Pakistan Post restructuring sparks fresh unrest

Workers protest proposed privatisation, threaten strike from July 1

RAWALPINDI:

The federal government's proposed restructuring of Pakistan Post has sparked strong opposition from postal employees, with the Postal Workers Federation Pakistan announcing a nationwide protest movement and strike from July 1 if the reforms, which it says could pave the way for privatisation, downsizing and closure of post offices, are not withdrawn.

The union has warned that the proposed measures would jeopardise the constitutional obligation to provide universal postal services and could adversely affect nearly 120 million people, particularly those living in rural and remote areas.

The reforms, aimed at improving operational efficiency, reducing financial losses and modernising postal services, include significant workforce rationalisation, closure of loss-making post offices, digitalisation of services and commercial utilisation of postal assets. Pakistan Post Headquarters has already sought detailed information from all Circle Offices to facilitate implementation of the plan.

According to official documents, the restructuring strategy proposes reducing the workforce by up to 30% following a comprehensive review. In addition, proposals have been sought to close 20% of loss-making post offices, while staffing at headquarters and field formations could be reduced by as much as 50% to lower administrative and financial costs.

The department has directed Circle Heads and the Additional Director General (Administration) to submit details of inactive Extra Departmental Branch Post Offices, surplus employees, vacant posts and their financial implications.

As part of the transformation programme, Pakistan Post plans to prepare a comprehensive business plan by inviting Expressions of Interest from consultancy firms. Request for Proposal (RFP) and bidding documents are expected to be finalised within one month, while a consultant is likely to be appointed within three months.

The reform package also focuses on expanding e-commerce and logistics services. Authorities have been instructed to identify international partners, hold meetings with prospective collaborators within two weeks and complete the integration of WebOC and CDS systems to enhance customs clearance and operational efficiency.

Under the digitalisation programme, 2,761 post offices will be automated in three phases over six months, with 500 post offices covered in the first phase, followed by 1,000 in the second and 1,261 in the third.

To generate additional revenue, Pakistan Post intends to lease commercially viable and undisputed postal properties. Consultants or transaction advisers may also be appointed to maximise returns from government-owned assets.

The department has further ordered a detailed review of operational expenditure, including fuel, maintenance and utilisation of official vehicles and postmen's motorcycles.

Addressing an emergency meeting of postal unions, Postal Workers Federation Pakistan President Pervez Akhtar alleged that the proposed reforms would effectively undermine the government's constitutional responsibility under the Universal Service Obligation (USO).

He said the withdrawal of subsidies would severely impact postal services for millions of people in underserved areas.

The federation maintained that nearly 40% of sanctioned posts remain vacant due to a prolonged recruitment ban, despite a substantial increase in population since 1988. It also alleged that a $55 million digitalisation project launched in 2015 with financial assistance from the Korea Eximbank remained incomplete after certain conditions were left unfulfilled.

The union argued that employees should not be made to bear the consequences of administrative shortcomings under the guise of reforms and warned that any downsizing or privatisation would disproportionately affect female employees. It demanded the continuation of the USO subsidy, immediate recruitment against vacant posts, withdrawal of any privatisation plan and restoration of previously profitable postal services, warning that failure to accept these demands would result in a nationwide strike beginning on July 1.