TEXT: As Pakistan continues its journey towards economic growth and development, the logistics industry plays a vital role in ensuring the smooth flow of goods and services across the nation. From bustling cities to remote regions, the logistics sector serves as the backbone of Pakistan's economy, currently 12% of GDP, handling 98% of national need for transportation. Logistics and Warehousing sector employ 6% of the total workforce of the country.
Fleet Operators Association of Pakistan (FOAP): as a registered Logistics Association plays a crucial role in representing the interests of the industry and fostering collaboration among stakeholders. FOAP act as platform for networking, knowledge sharing, and advocacy. It bridges the gap between government bodies, private companies, and international partners, ensuring that the industry's concerns and recommendations are effectively communicated. By promoting industry standards, training programs, and policy advocacy, FOAP contributes to enhancing the overall efficiency and competitiveness of the logistics sector.
The status: The growth and success of export industries, local businesses, agriculture, livestock, and services heavily rely on a well-functioning logistics and multimodal supply chain. However, the current state of the industry is far from ideal and does not align with the vision of positioning Pakistan as a regional hub for land routes connecting China, Central Asia, Europe, and Russia, including the progress achieved through the China-Pakistan Economic Corridor (CPEC). Pakistan is poorly ranked at 122 (2018) in the LPI - Logistics Performance Index by World bank, as compared to 44 of India, 100 of Iran and 64 of Bangladesh.
Identification as an Industry: It is an opportune moment for the Government to address this long-standing demand of this sector and recognize “Trucking” as an Industry; this will unlock immense potential, facilitate targeted policies, attract investments from national and international transport firms and owner and enhance the overall output of the economy. This initiativewill also go a long way in fostering the business-friendly image of the Government, committed to the welfare and progress of the Pakistani people.
Road Safety Training Institute: The condition of manpower and driver skills was foremost concern for the founding members of FOAP. The FOAP members collectively donated funds and constructed a Road Safety Training Institute with the collaboration of National Highway & Motorway Police (NH&MP) to equip the drivers and management with latest skills and knowledge in road safety through “Defensive Driving Courses” (DDC). The DDCs by NH & MP are being held twice a week, training drivers for safety, health, soft skills, and highways code. FOAP is in coordination with International Road Transport Union (IRU) to improve our courses and trainers to EU standards.
Axle Load Laws Implementation: Overloading is causing premature failure of our infrastructure; it is also the leading cause of fatalities in road accidents involving heavy commercial vehicles. Countless accidents go unreported every day that are caused by overloaded vehicles which are not designed for such loads. Their braking power, engine power and transmission systems are overburdened with continuous overloading. The price of human life is invaluable. According to a report by the World Bank on Road Safety, accidents cost Pakistan $12,550 million or about 4.5% of our GDP (Road Safety conditions in World Bank Report (www.roadsafetyfacility.org/country/pakistan). This metric can be reduced significantly if compliance of axle load law is implemented in letter and spirit. The government's efforts to enforce these regulations have faced challenges due to various reasons, including lack of implementation, insufficient infrastructure for weighing facilities, and limited resources for monitoring and enforcement.
Financing: Access to affordable financing remains a significant hurdle for the logistics industry in Pakistan. Lack of financial support and high interest rates makes it challenging for small and medium-sized logistics companies to invest in modern infrastructure, technology, and fleet expansion. Addressing this barrier requires the development of specialized financial products tailored to the industry's needs, providing collateral-free loans, and fostering partnerships with financial institutions to encourage investment in the sector.
Security and Roadside robberies: The logistics industry heavily relies on road transportation, and inadequate security poses a considerable challenge. The government must prioritize security of key bottle neck areas, where most of the incidents happen and increase posting and patrolling of the Law enforcement personnel in the areas.
Conclusion:
The logistics industry in Pakistan is a critical enabler of economic growth and development. To ensure its sustainable progress, stakeholders must address the challenges it faces head-on. Associations should continue to advocate for industry interests, collaborate with regulatory bodies, and drive initiatives for professional development. Simultaneously, the government needs to prioritize infrastructure development, streamline the will to effectively implement the Axle Load Regime and facilitate access to financing. By collectively addressing these barriers, Pakistan's logistics industry can unlock its full potential, contributing to the nation's economic prosperity in the years to come.
Copyright Business Recorder, 2023
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