Pakistan Post likely to get contract for delivery of smart cards

The Excise and Taxation Department Punjab is mulling over an agreement with Pakistan Post for the swift delivery of documents and CNICs to the residences and offices of around four million people annually.

Currently, the department has an agreement in place with a private courier company for the delivery of smart cards and registration documents, informed sources.

The excise department hands out more than four million consignments to the company annually, however, the courier service’s delivery rate is not up to scratch. The underlying reason for the shoddy pace of delivery is due to the measly amount of money the courier company receives for each delivery, sources further said.

The courier company is receiving Rs30 from the excise department for a single consignment. Due to the low rates offered by the company itself, the staff does not show much enthusiasm in finding an applicant’s address and making a prompt delivery.

The excise department has started negotiations with Pakistan Post on a government-to-government basis for the delivery services. The talks are so far said to be nearing fruition.

According to the agreement with the private company, if any documents related to a vehicle are lost due to an error by the company staff, the courier service is then obliged to give 10% of the registered value of the vehicle to the owner.

As of now, the maximum compensation limit mentioned in the postal department’s rules is Rs50,000. To make changes, the postal department has sent a summary to the Federal Ministry of Communications to increase this limit to 10%.

The excise department will seek the cabinet’s approval for a concession in the Public Procurement Regulatory Authority (PPRA) for a possible agreement with the postal department. In addition, the excise department has decided to set up its own “Project Management Unit”, for which a concept paper is being prepared.

At present, the department is compelled to hire the services of the Urban Unit or Punjab Information Technology Board for its projects.

Speaking to The Express Tribune, Secretary Excise and Taxation Department Punjab Waqas Ali Mahmood said that the convenience and interest of the people is the utmost priority.

“The private courier company will be given one last chance to improve its services before the government signs an agreement with the postal department,” he said.

Failure to produce smart cards on time lands firm in trouble

The senior officials of the taxation department have censured a private company tasked with the manufacturing of smart cards and issued a show-cause notice to it.

The company landed into trouble after it failed to produce 420,000 cards as per the schedule during the last month.

In its defence, the company said it is facing a dearth of lamination paper stock, and imports are also being delayed due to the coronavirus lockdown.

According to sources, top officials of the excise department are reviewing the legal aspects so that strict action can be taken against the company. Not only that, it is contemplating to take on board one or more companies for the job through bidding.

In its five-year contract, the company is bound to always keep six months’ stock in reserve. Currently, there is a demand to print more than two million smart cards annually. The excise department charges Rs530 from an applicant, out of which Rs437 is paid to the private company.

In December, the company was supposed to print 420,000 cards, but only 280,000 have been printed to date.

In light of the difficulties faced by the applicants across Punjab, the secretary and DG excise department are seriously considering options such as blacklisting the company or passing on the contract to another.

Published in The Express Tribune, January 7^th, 2021.