ISLAMABAD: The Pakistan Post Office Department (PPOD) is managing billions of rupees in cash-based transactions on an annual basis, but in the absence of accurate and real-time reporting of its transactions, an obstacle is created in introducing new business models and revenue streams, says the Auditor General of Pakistan (AGP).
The “Audit Report on the accounts of Postal Sector Audit year 2021-22”, a copy of which is available, noted that Pakistan Post Office faces severe issues in its financial reporting which is based on manual processes and a legacy accounting system.
Audit observations amounting to Rs3.503 billion were raised in the report during the current audit of the department. This amount also includes recoveries of Rs1.28 billion as pointed out by the audit.
The PPOD needs to move fast on digitisation and fully map and trace its customer records and financial transaction, it recommended.
The PPOD has a broad and varied role to play beyond the provision of communication links for individuals and businesses. However, the existing manual recordkeeping and antiquated systems are unable to meet the rising demands.
The PPOD made an effort by investing Rs831.084 million in the last nine years for the digitisation of financial services but all such efforts have remained largely unsuccessful due to mismanagement, inefficiency and loose controls, the report noted.
One aspect of PPOD operations is its under-utilised resources. The PPOD owns precious land at prime locations which can be utilized towards beneficial projects for revenue generation.
The report noted that the courier and logistics sector is undergoing a rapid transformational change in Pakistan, as consumers are now trusting online vendors and shifting to online shopping. The PPOD should tap the huge e-commerce business and compete with newly established goods delivery chains.
The entry of digital platforms offering speedy parcel delivery services has given a new dimension to parcel delivery. A huge network of post offices and operational fleet can be leveraged to gain a sizeable market share in electronic commerce. The PPOD may also focus on the revival of its core business, i.e., mail and parcel delivery which has great potential for revenue generation in the future.
The postal sector carries a huge potential for business growth for both the public and private sectors. The PPOD can substantially increase revenue by making itself a purely commercial organisation. It needs to work on exploring new vistas thrown at it by the rapid growth of logistics. It can work on finding new partners by offering its huge infrastructure and by investing in technology at the same time. However, while doing so the issues of transparency should always be a priority.
An all-encompassing ERP is the need of the hour in bringing transparency and operational efficiency to PPOD. By improving the mechanism of post offices across Pakistan, it can restore public confidence and compete with private courier companies which do not have their offices in far-flung areas, the report recommended.
The PPOD has taken some initiatives to expand its customer base through establishing Digital Franchised Post Offices (DFPOs) to streamline booking and real-time tracking and new services like the same day delivery of parcels and packets within the city, Electronic Money Order (EMO) and Pakistan Remittance Initiative (PRI) for delivery of international remittances, etc. EMS Plus has also been initiated to promote e-commerce and online business in line with modern techniques allowing delivery of parcels weighing up to 30kg to Australia, Japan, Saudi Arabia, Thailand, the UAE, and the UK.
As per data published by the Ministry of Communications, the courier and logistics sector is valued at $34.2 billion in Pakistan, registering a healthy annual growth rate of 18 percent between 2017 and 2018.
Copyright Business Recorder, 2022
Comments
Comments are closed.