Robust and integrated logistics: way to sustainable Pakistan.

• Author: Aijaz, Urooj

Byline: Urooj Aijaz

A nationwide campaign of Bahria University to promote country's blue economy

The performance of logistics sector provide a distinct contrast to the financial downturn Pakistan has been buried in. As of December 2018, the logistics sector is valued at $34.2 billion, registering an annual growth rate of 18% between 2017 and 2018 (source: Ministries of Communications and Postal Service), specialists rush to call attention to that the figures present just piece of the image in light of the fact that a huge portion of the segment works in the grey economy with no verifiable records or information. Pakistan is one of just a bunch of nations that doesn't have a committed Ministry of Transport further adds to the multifaceted nature of estimating the division's presentation and recognizing the cost, time and quality inefficiencies in freight management, transportation, warehousing, materials handling, protective packaging, inventory control, order processing, market forecasting and customer service.

It should therefore, not a surprise that on the World Bank's Logistics Performance Index (LPI) 2018, Pakistan has a ranking of 122 (out of 160 countries), primarily due to poor scores in customs clearance, tracking and tracing and timeliness while other developing economies facing similar industrial, financial and political challenges as Pakistan ranked better on the LPI. Bangladesh (100), India (44) and Nepal (114). The country's lackluster performance on the global index has continued despite receiving a 25 to 30% share of the annual Public Sector Development Programme funding.

World Bank estimated that the logistics sector in Pakistan could capitalize on untapped potential worth approximately $30.77 billion in 2015. This value would be realized by developing integrated road/rail networks (including air, sea and dry ports i-e Blue Economy), thereby improving connectivity between the rural areas and urban markets as well as among regional trading partners.

There is no doubt in the fact that Pakistan's exports will be competitive only when supply chain inefficiencies in bringing products, raw materials and finished goods to market are eliminated by improving the quality and linkages of transportation infrastructure. However, if Pakistan realize its logistics potential and turn into a regional trading hub than we need to work on long-standing issues of transportation sector on the top priority. Railway is the one of the cheapest mode...