TEXT: I heartily join Pakistan’s logistics professionals and advocates on this auspicious occasion - National Logistics Day 2022. It’s a day dedicated to recognise the importance of the logistics sector. Every year on June 28, National Logistics Day brings into sharper focus the role of logistics sector.
The International Freight Forwarding and Logistics Industry plays a critical role being an economic driver of Pakistan economic growth and prosperity. Transportation through sea, air and road, its logistics and supply chain provide solutions to complex export and import activities and play key role in the nation and global economy. The Logistics Industry provide employment opportunities, augment education & training and offer economies of freight to merchants, our clients.
Major sectors of Pakistan’s economy are Agriculture, Industrial and Services sector. According to Foodand Agriculture Organization (FAO), World Atlas 2018, Pakistan is ranked 4th in cottonproduction, 5th in sugarcane while 8th and 10th in wheat and rice production, respectively.
In term of natural resources, Pakistan is one of the resource rich countries in the world having abundant reserves of coal, gas, gemstones, copper, salt, minerals and gold. Other resourcesinclude oil, iron and aluminum which are vital for any growing economy.
Pakistan is the 5th most populated country in the world and has greatest demographic opportunities for development as growing youth population hasentered its adulthood. The increasing proportion of Pakistan’s youth bulge with diversifiedcapabilities would be supportive in achieving sustainable economic growth.
Pakistan is strategically located in the crossroads of Asia with China as its neighbor in the north, India in the east, and Iran and Afghanistan in the west. Thus, its strategic location allows Pakistan to become an important trade, energy and transport corridor. Most importantly, Pakistan is a gateway to energy rich States of Central Asia, the Gulf States and far Eastern countries. This unique feature of Pakistan’s strategic location alone makes it a place of endless possibilities.
The country’s geographic position gives it a strategic advantage in handling transit and transshipment trade for landlocked neighbors Afghanistan, Central Asian Republics strictly a business prerogative, better appreciation of the industry and later on even some mechanism for credit rating would help companies access bank financing consistent with prudential criteria established by the central bank.
The government needs to recognize that, without a strong freight forwarding and logistics industry, ambitious export targets are unlikely to be achieved. The end of preferential access to developed markets under the emerging global trade environment makes it imperative for the government to view the International Freight Forwarding Industry as part of the mainstream economy. The neglect of Freight Forwarding & Logistics Industry deprives the members with a proper regulatory structure and access to preferred financing facilities.
One of the key factors is the misinterpretation of role of Freight Forwarding in the local industry, mixing it with the concept of Shipping Industry. Freight is just one aspect of the Freight Forwarders’ role. In any developed country it is the Freight Forwarding Industry that controls the complete flow of materials from ex-works to final destination offering multiple options.
CPEC (China Pakistan Economic Corridor) is the prime opportunity towards harmony and prosperity for the local logistics companies in Pakistan and the concept of ONE ROAD ONE BELT is the connectivity of world through roads provides to excess the emerging markets of Central Asian countries. Giving the enabling environment and infrastructure Pakistan can become a very vibrant Transshipment Hub of the region having land-locked Afghanistan, CIS Countries and Western China to cater cargo traffic to/from Europe, Middle East and Far Asia.
New innovations in the logistics field has inspired and promoted growth through advancements in logistics best practices. More recognition and appreciation however is needed from relevant Ministries to support and expand logistics sector of Pakistan.
As Chairman, and on behalf of all the PIFFA Members I am pleased to offer my unwavering support for the National Logistics Day and wish for continued success of the mission.
Copyright Business Recorder, 2022
Comments
Comments are closed.