ISLAMABAD: Pakistan Post is facing a deficit of Rs14 billion as the government considers restructuring the national postal service and expanding its digital operations.
Federal Minister for Communications Abdul Aleem Khan disclosed the figure while addressing the Faisalabad Chamber of Commerce and Industry on October 31.
He said the organisation employs approximately 22,000 people and is under financial pressure, including the burden of an additional 4,000 employees recruited in recent years.
The minister said Pakistan Post needs a new business model to reduce losses and become financially sustainable.
Digital services and restructuring
The latest remarks follow a review meeting held on October 27, when senior Pakistan Post officials briefed the minister on the department’s finances, administrative costs and outstanding obligations.
The meeting also examined the cost of public services previously provided without compensation and the financial impact of staff recruitment in 2023.
Khan directed officials to prepare a restructuring plan for submission to the prime minister.
The proposed changes include modernising postal operations, improving efficiency and making greater use of technology.
The minister also raised concerns about delays in earlier digitalisation efforts. He said an initial programme involving 86 major post offices could have provided a starting point for wider modernisation.
Pressure on a nationwide service
Pakistan Post operates in a market where private courier companies and digital services have changed how customers send documents, parcels and payments.
The government’s challenge is to improve the organisation’s finances while maintaining services used by people and businesses across the country.
Khan said the department should move towards a model that can sustain its operations without placing a continuing burden on public finances.
For now, the Rs14 billion deficit provides a measure of the financial problem the government says it is trying to address.
Pakistan Report illustration.