ISLAMABAD - The state owned mailing company- Pakistan Post continues to suffer huge losses due to increased gap between revenue and expenditure, and failure to revamp its obsolete system as par with private mailing companies.

In 2014-15 the revenues were Rs9673.512 million and the expense was Rs16004.578 million, translating into a loss of 6331.066 million, said official data. During 2015-16 the total losses plunged to 7488.924 million while in 2016-17 the deficit between revenue and expense plunged to Rs9306.548 million.

Pakistan Post was a self-supporting department from 1998-99 to 2008-09. According to officials the huge losses are due to increase in pay, allowances and pension benefits granted by the government to the employees from time to time since the year 2009-10.

Postal tariff was last revised in 2009 whereas prices of commodities and services, and utilities has been increased manifold since then.

The rate of Post Office Service charges had been reduced from Rs1.50 % to Rs0.50% on savings scheme work since October 2010 by the finance division.

This has reduced revenue of Pakistan Post Office Department PPOD by Rs2 billion annually approximately.

The expenditure on account of pension payment is being borne by the Finance Division whereas pension payment of postal employees is included in expenditure of the PPOD due to which deficit has been increased.

During the financial year 2016-17, the PPOD had incurred an expenditure of Rs. 5,696.844 million under Head A04- Employees Retirement Benefits.

As much as 78 percent of the budget expense is incurred on mandatory payments of pay, allowances and pension to serving as well as retired employees.

The PPOD has already taken up the case with Finance Division to exclude the pension payment from budget/ expenditure of the PPOD.

Proposal for increase in existing Inland Postal Tariff is under consideration of the Ministry of Postal Services.

Costing of Saving Bank work was carried out by Cost & Management Firm on the direction of Ministry of Finance with the result that 2.05% is the actual Cost while currently Finance Division has been allowing only 0.5% since 2010.