Pakistan Logistics Industry Suffers Enormous Losses as a Result of Archaic Practices
KARACHI: The country’s logistics industry is suffering an estimated loss of around $36 billion annually. This is mostly due to the use of antiquated, offline trade practices. This may result in a possible loss of 2 to 3 million jobs in the sector.
At the Pakistan Logistics and Shipping Summit 2025, there were calls made by experts for immediate, effective modern, digital solutions to solve these problems. They emphasized that real-time tracking, processing, and digital services are the keys to development and competitiveness, particularly compared to developed countries.
While government procedures have been brought to near real-time levels, there is still a wide gap. Some 70% of private sector operations, including service providers and freight forwarders, are still based on outdated, manual procedures.
Trade-related issues are also creating issues. For example, only 40% of imported containers are re-exported from Pakistan, which shows that there is a mismatch in the country’s foreign trade.
Asif Pervez, CEO of Galaxefi Solutions, noted that efforts such as Digital Pakistan, Uraan Pakistan, and the Pakistan Single Window (PSW) are setting the stage for modernization. The PSW, for instance, has automated more than 70 government departments, streamlining customs, licensing, and regulatory procedures and reducing them as a trade barrier.
Even with this advancement, some issues still linger. Technological disparities, hesitation on the part of small and medium-sized businesses (SMEs), and delayed government assistance for digitization are still hindering Pakistan from catching up as fast as other emerging economies.
The logistics industry needs to pick up digital solutions quicker to realize its utmost potential and avert further economic losses.
