Postal Services 10-year losses stand at Rs 61.48 billion: Senate panel told

The cumulative losses of Postal Services remained Rs 61.48 billion during the last 10 years including Rs 9.135 billion in 2018-19.

This was revealed before the Senate Standing Committee on Postal Services which also took strong notice of the absence of the minister and secretary Ministry of Postal Services from the meeting. The committee which met with Muhammad Atiq Sheikh in the chair Friday also decided to take up the matter with chairman Senate.

Deliberating on the updates on cumulated losses, the committee was informed that increase in pay allowances and pension benefits is a major contributor towards the widening gap between expenditure and revenue. It is also believed that the Finance Division had decreased the rate of post office commission in Savings Bank Scheme from 1.56 percent to 0.50 percent in October 2010 which reduced the agency receipts of the Department. The chairman committee while reviewing details recommended that operating expenditure against income must be added as well.

Postal Services officials informed the committee that the department generated revenue of Rs 14.767 billion during 2018-19 against the expenditure of Rs 23.902 billion. Around 80 percent of the revenue goes to payment of pensions and allowances, the officials maintained. The parliamentary panel was further informed that for the first time, loss of Rs 145 million was witnessed in 2009-10 which widened to Rs 10.500 billion in 2017-18. However, losses were reduced to Rs 9.135 billion in 2018-19 and further improvement is expected in the current fiscal year after the increase in charges.

When asked about the reasons behind the reduction in losses, the committee was informed that performance has been improved and more focus was given on outstanding dues that helped reduce the deficit. However, the committee was not convinced with the reply and observed that outstanding amount is not reflected on the balance sheet, which is quite strange.

The chairman committee said that repeated attempts were made to contact the minister but of no use and the minister remained absent from the meeting without any notice. "I do not know whether or not the Minister of Postal Service Murad Saeed considers this ministry as a ministry," added the chairman committee.

Mirza Mohammad Afridi said that the importance of this committee is being overlooked. The secretary postal services did not come to attend last two meetings, he added.

While reviewing discrepancies in recruitment during previous regimes, the committee recommended that Pakistan Post must focus figures in this regard. A separate briefing was recommended on National Industrial Relations Commission (NIRC).

Discussing re-branding and modernization, the committee was informed about same day delivery service, mobile app, pick up service and e-commerce. The committee was informed that Pakistan Post has registered 700 partners to date and 260 packets have been delivered. The number of registered users of the mobile app was 50,000. The committee showed concern regarding small number of users and inquired about reasons.

Speaking about EMS plus, a specialized service for the export sector that aims to deliver parcels at major overseas destinations in 72 hours with real time track and trace facilities, the chairman committee advised the organization to consult with the Ministry of Commerce to brainstorm ideas for improvement of service. Discussing re-branding of GPOs and other services, the committee directed Pakistan Post to provide details of cost in the next meeting. The committee was informed that the organization is collaborating with NADRA to renew CNIC through Pak ID at post offices. This initiative, it was stated, is at a pilot stage. Ateeq Sheikh directed that an exclusive briefing in this regard must be given to the committee.

Regarding automation of post offices through Korean Exim Bank Loan, the committee was informed that PC-1 for digitization of post offices was prepared on the basis of feasibility report. The committee gave directions for a separate meeting on this issue and said that funding must be provided by the government on valued projects, rather than procuring loans on high interest rates. In relation to SAP ERP, the committee was informed that this project would entail a cost of $8 million for two years. Ateeq Sheikh was of the view that the projects discussed are good; however, the department lacks focus and funds to carry these through. Inquiring about Army, Navy and Air Force pensions, the committee was of the view that using banks for the purpose is against the rules on this part of the Act. He gave instructions for a separate briefing on the issue.

Chaired by Senator Mian Muhammad Ateeq Sheikh, the meeting was attended by Senator Mirza Muhammad Afridi, Senator Anwar Lal Dean, Senator Aurangzeb Khan, Senator Islamuddin Sheikh and senior officers from Post Office Department along with other concerned.

Copyright Business Recorder, 2019