Pakistan Post faces financial crunch

Country ranks 55th among 166 countries in global postal performance report

RAWALPINDI:

World Post Day was observed across the globe, including Pakistan, on Thursday.

This year has been described as one of the most challenging for Pakistan Post.

According to the Universal Postal Union's latest report, Pakistan ranks 55th out of 166 member countries in overall performance. During FY 2024–25, Pakistan Post's income stood at Rs10 billion against an expenditure of Rs21 billion, falling short of its Rs11.5 billion target.

A major reason for missing the target was the withdrawal of several projects from the department.

The Punjab Nigehban Ramzan Project, expected to generate Rs1 billion, was cancelled, while revenue from driving and arms license renewals and provincial taxes was also discontinued.

Now, most of the organisation's income comes from postal services and utility bill collections.

Despite the challenges, earnings were Rs1 billion higher than the previous year.

Sources said that the main cause of financial disparity was the lack of digitalisation, leading to the closure of profitable services like pension payments and postal savings accounts, which earlier generated Rs10–12 billion in annual commission.

The digitalisation process remains sluggish due to a lack of funds. However, new projects are being initiated with organisations such as BISP and utility companies to boost revenue.

Officials said the department could only regain public trust and profitability through timely mail delivery, effective complaint handling, and professional marketing teams.

In a press release, Pakistan Post stated that World Post Day celebrates the sector's role in connecting people, communities, and economies worldwide.

The theme for this year, "Post for People – Local Service, Global Reach," reflects the sector's commitment to innovation, inclusion, and reliability.

A central ceremony was held at Pakistan Post Headquarters, Islamabad, where Director General Samiullah Khan hoisted the UPU flag and Additional DG (Operations) read the UPU message.

Pakistan Post also issued a commemorative stamp on dyslexia, becoming the first postal administration in the world to do so, aiming to raise awareness and promote inclusion for people with learning differences.