Digital overhaul needed to tackle Pakistan’s $36bn logistics deficit: CAREC forum

Pakistan is losing an estimated $36 billion annually due to outdated, largely offline logistics systems, losses that experts say can be reversed only through rapid digitalisation and stronger public–private partnerships.

This was revealed during CAREC Business Forum in Bishkek, where global development partners, including the Asian Development Bank (ADB), renewed commitments to cross-border digital connectivity, the Central Asia Regional Economic Cooperation (CAREC) said in a press release.

The losses in foreign trade due to lack of digitisation in Pakistan were discussed during the international where the ADB has announced plans to invest over $10 billion by 2030 to support projects under the CAREC programme, aiming to build a digitally connected and resilient region.

The urgency for transparency and traceability in trade has grown following the International Monetary Fund (IMF)’s recent identification of an $11 billion discrepancy in Pakistan’s trade data, urging Islamabad to modernise reporting and restore global trust.

Addressing the CAREC Business Forum, Founder and CEO of galaxefi Asif Pervez said Pakistan stands at a pivotal moment where technology-driven reforms can unlock significant trade gains and position the country as a digital trade hub for the entire CAREC corridor.

CAREC Tranche-3 project faces uncertainty

“Pakistan cannot afford to lose $36 billion annually when technology offers a direct solution to overcome these systemic bottlenecks,” he said. “The government must act decisively to build a trusted digital ecosystem for regional trade.”

His remarks align with findings from the CAREC Institute, which has consistently warned that the region’s major trade barrier is not physical infrastructure but the absence of a unified multimodal e-logistics system. While Pakistan Single Window (PSW) has digitised government procedures, nearly 70% of private logistics operations remain manual, keeping Pakistan uncompetitive across global supply chains.

ADB President Masato Kanda told delegates that countries which “connect faster and trade smarter” will lead the next wave of economic growth. He announced that the ADB will quadruple private-sector financing to $13 billion a year by 2030, dedicating 30% of future operations to regional connectivity and digital corridors.

“This connectivity is designed with purpose making commerce smoother, greener and more inclusive,” he said.

Pakistan signed two major MoUs at the forum: the CAREC Innovation and Venture Investment Catalyst Facility and the CAREC Digital Corridor Initiative, both aimed at deepening digital cooperation.

During discussions, galaxefi held detailed consultations with Pakistani officials, including Federal Board of Revenue’s Syed Shakeel Shah and Ministry of Information Technology & Telecom’s Jahanzeb Rahim, who endorsed galaxefi’s readiness to close Pakistan’s private-sector digitalisation gap. ADB’s regional specialists also encouraged galaxefi to register formally with the bank—a process now completed—boosting the platform’s institutional standing.

galaxefi has already invested millions in a future-ready architecture featuring AI-powered, faceless operations through its galaxbot and butler modules. Its partnerships with 1LINK, Meezan Bank and PIFFA enable secure digital payments, escrow-based financing and sector-wide adoption. By integrating seamlessly with PSW and Customs systems, galaxefi is positioned to operate as both a National e-Logistics System (NELS) and a regional digital backbone for the CAREC corridor.

“Pakistan must seize this moment,” Pervez stressed. “The technology, infrastructure and partnerships already exist. What we now need is decisive alignment from the public sector. This is how we eliminate $36 billion in losses and transform into a competitive regional force.”

With ADB scaling investments, CAREC states committing to digital cooperation and the private sector offering ready-made solutions, Pakistan faces a rare window to accelerate economic transformation. The opportunity extends beyond regional supply chains; a modern e-logistics architecture can enable Pakistan to serve as a logistics and digital hub for landlocked Central Asian economies through the deep-sea Gwadar Port.