Pakistan Post gets a Facelift – Now it’s a Logistics and Mobile Financial Company

You might be wondering, ‘What in the world would a blog post about Pakistan Post be about?’

Until recently, Pakistan Post may have been the most obsolete means of sending packages in the world. I remember a few years ago I had to send something by Pakistan Post and my package was put in a jute bag and sewn up!!

We all know that Pakistan Post is far, far away from its glory days. Courier services have taken away the bulk of their business as they are more trusted to provide an efficient and safe delivery service. On top of this, the emerging e-commerce industry and its tie ups with courier companies has given birth to another stream of revenue that Pakistan Post is completely oblivious of.

Well let me tell you that change is a foot at Pakistan Post! Just a few weeks ago The Prime Minister made a presentation about revamping Pakistan Post, a proposal that has been formally approved!

Let’s Revamp Pakistan Post!

According to the proposal, there are some major changes in the pipeline that will bring Pakistan Post up to speed with the current trends.

There are three major areas that the reforms will be focused on:

  • Rebranding
  • New business launch: Mobile money transfer
  • Launching a logistics company

Mobile money transfer business

Around 3,200 post offices and approximately 9,000 agents will be readied by Pakistan Post to setup shop as a mobile money transfer solution (think ‘Easy Paisa’).

The proposition is dependent on a significant investment being pumped in as it will require the roll out of software and hardware infrastructure, training of personnel, marketing and advertisement, etc.

The goal of this new adventure will be to capture 20% market share within two years and earn around 5 billion PKR in revenues.

Pakistan Post does have the office infrastructure to reach deep within Pakistan, which is definitely a plus. We will have to however, wait to see how the plan is executed.

Pakistan Post’s new logistics company

Seeing that Pakistan Post has been overtaken by courier companies which are doing the tango with e-commerce players and reaping all the benefits, it only seems logical that a logistics company be setup under the umbrella of Pakistan Post. The potential in numbers is in the billions of rupees in the coming years.

The new logistics company will partner with the private sector for investment on a revenue sharing basis. The setup plans include:

  • A trucking fleet with GPS
  • Warehousing
  • End to end distribution channels
  • Technology infusion
  • Marketing/branding

Rebranding of Pakistan Post:

You may have noticed a few years back there was something similar afoot at Pakistan Post evidenced by marked changed in the appearance and colors of the Pakistan Post brand. However, just changing the packaging does not make the product better.

Although there is a huge need to rebrand and re-position Pakistan Post, in our opinion it will be completely useless until the service offering is made significantly better

The new reforms will be looking at getting Pakistan Post a revenue target of 900 million within the first two years and an ambitious 15% growth in the following three years.

As ambitious as the reforms sound, I believe all that is needed is a good mind at the helm and meticulous implementation for the project to succeed.


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