Growth Opportunities In Pakistan’s Logistic Sector
One of the many goals of Pakistan Vision 2025 includes enhancing and improving national transportation infrastructure. With this improvement aspires to achieve a better logistical and transportation system. Developing SEZ along with more industrial parks will help to strengthen this goal. In Pakistan, the roadways still play a critical role in helping transportation of goods across the country. In the future, the share of rail freight is expected to increase. Currently, the government is prioritising the development of road networks for obvious reasons. With the participation of private stakeholders, this development is expected to enhance its pace further.
The Logistic Sector Of Pakistan
The vast area of Pakistan is critically dependent on the logistic sector for the availability of goods and services across the country. Pakistan Post, an important logistics company in Pakistan, ensures the transportation of goods from one region to another. In addition to it, other logistics companies like TCS also play a critical role in strengthening the sector. The logistics sector currently employs more than 20% of the people in the service sector itself. It is an important contributor to the GDP of the country too. This contribution is further expected to grow in the coming years.
Like any other country, mutual growth in the logistic and transportation sectors exists. The logistic industry of Pakistan ensures connectivity amongst the people. The logistic market is massive and it has a vast scope of growth, provided it gets the right direction for it.
How Can Improvement In the Logistic Sector Help?
The logistic sector is highly segmented. The logistic companies, with the introduction of the right technology first, should maintain a flow across the different segments of the logistic sector. An improvement in it ensures better efficiency in the logistic industry. The efficiency can, in turn, reduce the transportation cost. On the other hand, an improvement in the transportation sector will directly impact the advancement of the logistic industry. Progress in the transportation sector will ensure better rural and urban connectivity.
Integrating the road and railway network with the critical economic zones can improve regional trading. It will further lead to hyper-connectivity. In Pakistan, Special Economic Zones play an essential role in the logistic sector. It can serve as a macro driver for the same.
How To Improve The Logistic Sector?
The benefits of the improved logistics sector are many. However, how to ensure this improvement? The government will do its part, but it is equally important for all the logistic companies to invest themselves in improving it. Technology adoption is a sure-shot way of driving a massive improvement in this sector. Automation technology is crucial in improving efficiency and breaking the monotonous work cycle.
Secondly, the staff needs to be trained to use the technology. The companies should conduct staff training regularly to ensure they are adept at the changing technology. Further, an examination of the transport mode and routine is necessary. In any logistic company, transportation bears a high cost. However, changing the transportation route and mode can heavily reduce the cost. Thankfully, technology can monitor the transportation part too.
Optimisation of the warehouse is essential too. Warehouse management affects the entire process of the logistical service. Proper warehouse management can also ensure perishable items’ management. Proper storage of parcels in the warehouse can increase efficiency by reducing the employees’ time and effort. Optimising the warehouse is also critical for easy management of the warehouse too. Lastly, wherever possible, automation needs to be implemented. Modern technology is designed to improve efficiency by eliminating manual work. It needs to be exploited for the benefit of the logistic companies.
If Pakistan wants to achieve its Pakistan Vision 2025, it is essential to work on the transportation and logistics sectors. The government can work on improving connectivity. The private stakeholders can contribute by adopting technology to stay competitive. Improving efficiency is necessary to make this business profitable by a more significant margin. The benefits of improvement in the logistic sector will help both the government and the business.
Currently, the obstacles are many. In other words, there is a massive scope for improvement in the logistic sector to grow. It is high time for Pakistan to grow to ensure that it can compete with other international players.