Govt to set up Pakistan Logistic Company

Looks to regulate business under National Freight and Logistics Policy

ISLAMABAD:

The government is likely to set up Pakistan Logistic Company to regulate the business of logistics under the National Freight and Logistics Policy (NFLP) of Pakistan.

The Cabinet Committee on Transport and Logistics (CCoTL) had considered setting up a logistics company and formed a committee under the chairmanship of special assistant to the prime minister on maritime affairs to deliberate on the viability of establishment of Pakistan Logistic Company. A report in this regard may be submitted to the CCoTL for consideration.

Regulation of logistic business

The Ministry of Communications also informed the cabinet body on transport and logistics that the courier/logistics business in Pakistan was unregulated. In this regard, a Courier and Logistic Regulatory Authority bill was also pending in the parliament that the Minister for Railways stated he would pursue.

The cabinet body observed that establishment of a Pakistan Logistic Company may also be explored. The Ministry of Maritime Affairs proposed that it would be interested in partnership with the Ministry of Communication in this regard.

The Ministry of Communications briefed the cabinet committee that the Economic Coordination Committee (ECC) has already, in principle, approved the National Freight and Logistics Policy (NFLP) in its meeting held on March 10, 2021 and the Planning Commission deputy chairman was directed to hold consultative meetings with all stakeholders. It was informed that the action in this regard was under process in the Planning Division.

The cabinet committee was informed that the policy contained 124 recommendations regarding all ministries/divisions and provincial governments. Therefore, in an earlier meeting of the ECC, the Ministry of Communications was directed to present status of the recommendations relating to the Ministry of Communications.

Accordingly, it was informed that the actions to be implemented and the agencies responsible were already directed to take further necessary action as contained in implementation matrix of the policy document. The CCoTL was, therefore, requested to oversee the implementation of National Transport and Logistics Policy as per its terms of reference.

Secondly, it was requested that the Ministry of Planning Development and Special Initiatives should act as a focal point for implementation of the policy.

Oil pipeline

Special Assistant to Prime Minister (SAPM) on Power and Petroleum Tabish Gauhar also informed the forum that a pipeline for transportation of gasoline from Karachi to Mahmoodkot-Macheki would be functional from September 1, 2021, reducing the transportation cost of gasoline to upcountry.

While this development may affect the business of oil tankers, this might become an issue in future. He suggested taking some measures to compensate them for their business loss. The cabinet body agreed that the secretaries of Ministry of Communications and Ministry of Maritime Affairs will engage with the oil tankers association in order to explore some viable options.

CCoTL considered the summary and noted the position presented by the Ministry of Communication regarding NFLP and decided that the Planning Commission Deputy Chairman expedite review on the policy and submit a report to CCoTL, after consultation with all major stakeholders including provincial governments, for consideration as already decided by the ECC.

Published in The Express Tribune, July 11^th, 2021.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.