Shifting the goal post

Of the PTI government’s copious initiatives to drive positive change within the country, the latest comes in the shape of modernizing the archaic Pakistan Post, which has been mired in ineptitude and inefficiency for many decades due to a combination of both external and internal factors.

Holding the reins of change, Minister of Communications and Postal Services, Murad Saeed has vowed to offer competitive prices and better quality to local consumers nationwide in a bid to transform the government’s postal services. The entity is set to offer a range of facilities leveraging its network reach, encompassing everything from mail and parcel deliveries to financial services.

However, amid the hive of activity, the pace of change and implementation of new ideas must be underpinned by pragmatism as well as comprehensive and sustainable reforms.

Akin to postal operators globally, Pakistan’s Post Office, is a national treasure that can play a pivotal role in facilitating businesses and information flow within the country. Rooted in its public mandate to serve all parts of the country, such an entity has the potential to boost the economy while improving industry standards and contributing to a thriving industry overall. Crucial to this affair is the establishment of a broad regulatory framework that can raise the bar for the industry and new entrants. The revamping module should not only be comprehensive, but also transparent, inclusive of all stakeholders, comprising private sector companies, and conducive to a flourishing free market enterprise driving growth and innovation.

In the face of fluctuating priorities and poor quality of services by the government-held organisation, private companies have had to bear the burden of building credible infrastructure, at great cost, that has supported local consumers for decades. Quality, credibility and speed of service are of utmost importance to the average consumer, and one would expect the revamped postal service to be centered on these values.

In this backdrop, the government’s endeavor to bring real change can be achieved much more efficiently if it collaborates with private companies in some sort of public-private model. This will serve as the doorway to an exchange of expertise, development of services and more sophisticated solutions that would not only create wider choices for the average consumer but also become an impetus for innovation within the industry overall. Perhaps, the government’s postal services and private courier companies can work synergistically to cultivate a culture of improvement that may be mirrored in the adoption of best practices. This public-private model may bring into being a robust, consolidated mechanism that will only enrich the industry. Rather than reinventing the wheel, the postal service could benefit from the sharing of knowledge and could leverage lessons learnt from decades of local industry experience. Such public-private partnerships can lead to the creation of national champions that all Pakistanis can be proud of, particularly in light of the deluge of foreign competition.

Furthermore, in order to realize the ambition of upgrading the postal services of the country, certain inherent legacy issues must be dealt with categorically. These include an age-old infrastructure that must be altered in line with modern –day demands. In addition to this, high fixed costs, such as pensions, lack of motivation among employees and underutilization of resources must be addressed immediately to allow any positive and sustainable turnaround. Tackling these issues that undermine this national treasure will alleviate the rising losses to already strained public finances, estimated to be close to PKR 10 billion per annum. The postal service must build credibility, show respect to the taxpayer and demonstrate a sense of financial discipline to truly make its mark.

Lastly, Pakistan is and always will remain an attractive investment destination with the logistics market alone valued at $34.2 billion today and growing at a rate of 18 percent per annum. Therefore, any foray into this sector for Pakistan Post must be carefully mapped out and ensure its social obligations are not neglected and in fact sustained going forward..The government should weigh its options before taking a plunge into this sector as it is a major field that requires massive capital and specialized skills. Funding is another major concern when it comes to logistics. Any decision in this regard must be thoroughly reviewed to avoid unfavorable outcomes that may prove detrimental to the national treasury, given the Post Office’s unstable performance in the past.

This also makes it imperative for the government to introduce reforms in a way that the value of national assets is nurtured and maximized, as opposed to being extracted. While there has been a buzz around foreign investment, it is significant to bear in mind that foreign capital will impose higher overall costs for the country and the Pakistani taxpayer. It is, therefore, advisable for the government to look at local expertise and local capital before inviting foreign capital. Any direct investment that neglects comprehensive reforms and structured framework will grossly undervalue and undermine a national treasure that holds immense potential for betterment.

The writer is a freelance contributor