Improving logistics linked to unlocking trade potential

KARACHI: Mian Zahid Hussain, President Pakistan Businessmen and Intellectuals Forum, Chairman National Business Group Pakistan (NBG), President All Karachi Industrial Alliance, and Chairman Policy Advisory Board of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has emphasised the urgent need for a cohesive national logistics strategy to unlock Pakistan’s trade potential.

He said that Pakistan’s strategic location and vast coastline have made it a central regional logistics and maritime hub. However, despite this potential, the country’s logistics sector remains underdeveloped and riddled with inefficiencies.

Pakistan’s sharp decline was reflected in the World Bank’s Logistics Performance Index (LPI), where its ranking plummeted from 68 in 2016 to 122 in 2018. This index places Pakistan significantly behind regional peers like Vietnam (39), India (44), and Bangladesh (100).

He pointed out critical weaknesses in customs efficiency, infrastructure quality, and a comprehensive national strategy as key barriers to progress. He emphasised that these inefficiencies inflate production costs by nearly 30 percent and are estimated to cost the economy 4–6 percent of GDP annually.

To reverse this trend, he recommended a series of comprehensive reforms, including the full and swift implementation of the Pakistan Land Port Authority Act 2025 to create a "one-window" solution for trade facilitation.

He asked for leveraging technology like the Faceless Customs Assessment system to streamline procedures and reduce delays, modernizing ports, strengthening the Pakistan National Shipping Corporation (PNSC), and investing in a national cold chain network to support exports. He said while capacity exists, it is the enabling systems— regulatory frameworks, infrastructure, and technology— that remain weak. By addressing these gaps strategically, Pakistan can transform its logistics sector from a bottleneck into a powerful engine for sustainable, export-driven growth and global competitiveness.

Mian Zahid concluded that a cohesive national strategy is essential to turn logistics into a central driver of Pakistan's trade policy.

Copyright Business Recorder, 2025