Should Pakistan Post be disbanded, privatised or revived?


“We want to know why the government is in a hurry to sell assets worth billions of rupees of the state-run Pakistan Post, which is giving huge revenue to the national exchequer

” The former ruling party argued that due to its 97,000 employees, the postal service was bringing in a loss between Rs7-8 billion per annum

However, the attempts fell flat, as no private partner showed any interest in investing or taking up a falling company

Now, its condition remains critical, with no signs of improvements in sight

It was argued that privatisation would help Pakistan Post in two ways: not only would it maintain efficiency as a private venture, it would also generate enough revenue to unburden its financial expenditure from the national exchequer

However, both these targets can be attained without privatising it

The main problem is that over the years, due to its own failings and heavy competition from private companies, the government has simply left Pakistan Post to the neglected state it is currently in

Privatisation does not always work for the good of the masses, and Pakistan Post’s privatisation would only end up dismantling the organisation for good while also disfiguring our national identity

In developed countries, none of the national departments are privatised for a reason, but developing countries feel that letting go of their responsibility is the best way forward when departments stop functioning due to their own inefficiency

When the National Testing Service (NTS) was carried out in 2006, its entire system was based on courier services and significantly escalated the business of private courier companies

They came in the market providing feedback on courier delivery and confirmation, earning the confidence of customers, making this yet another opportunity missed by Pakistan Post

The matter of privatisation cannot be discussed without involving the cost to the public

Private owners only think of profits while running businesses, but the state cannot run its departments the same way

Keeping Pakistan Post under the government provides the lower strata of Pakistani state, which is a significant number, the opportunity to keep in touch and continue their businesses in an affordable manner, compared to the steep costs of private courtier companies

Disbanding or privatising it will surely make people’s lives harder and burden their pockets

In May 2018, Rs370 million were allotted to Pakistan Post to rebrand its post offices across the country

The aim was to try and take the company out of loss and make it a profitable organisation

And yet, the issue is not that simple, for until the thousands of employees remain on its payroll, expenditure and losses cannot be minimised

On the private front, a range of courier services are operational in the country and earn hefty revenue due to the lag created by the lack of functioning on Pakistan Post’s part

They now constantly innovate to provide better facilities to customers and increase competition in the market, but if the government could only provide the facility of tracking packages or text message confirmation, people would automatically get attracted to the service over private ventures that charge you an arm and a leg for the same

There remain a plethora of issues, but the vital one is the lack of interest shown by political parties to this department

One hardly heard a word regarding any reform in Pakistan Post during campaigning for the 2018 General Elections, indicating its unimportance in the power corridors of the country

While the public, the media and the politicians all stress over the functioning (or lack thereof) of Pakistan Railways, Steel Mills and Pakistan International Airlines (PIA), no one talks about Pakistan Post, despite it having the capacity to unburden the circular debt and contribute to the economy

If Pakistan Post is modernised instead of privatised and actually run by the state for profit, it may actually end up creating jobs in the long run

The existing setup will not require a huge sum of budgetary allocation for improvement, only a strong monitoring policy and its implementation

The offices of Pakistan Post are located in every city, town and village of the country but remain in devastating conditions as they are ignored by concerned authorities

It only needs attention and an effort to highlight its importance and contribution towards the development of the country

Instead of privatising Pakistan Post or disbanding it, Prime Minister Imran Khan paying some attention to the matter will attract people’s attention towards it, as the nation looks up to him and follows his lead when it comes to taking those matters seriously that will bring prosperity to Pakistan and ease its economic turmoil as well as strengthen its institutions

Asad Umar can attract people by elaborating the profitability possible by improving efficiency

Shandana Gulzar Khan can explain its importance by making a comparison between this sector and that of state-run departments in developed countries

 Apart from these government officials, it is the responsibility of every social media activist and Pakistani to understand the importance of revamping Pakistan Post and bringing it to the 21st century, because its revival may seem insignificant, but will only play its part in creating a prosperous nation



Date:11-Nov-2018 Reference:View Original Link