It has been learnt that the government is actively considering the establishment of a Pakistan Courier and Logistics Regulatory Authority, reportedly to regulate the country's courier and logistic sector. A Bill known as the Pakistan Courier and Logistics Regulatory Authority Act 2017, has recently been passed by the National Assembly of Pakistan to this effect.
This Bill which contains provisions like revoking of licence on transfer of ownership, even restrictions on use of 'funds generated through services'. Thus the Bill if enacted would lead to virtual nationalization of Pakistan's entire logistics sector, which according to the language used in the Bill, extends to all modes of transportation from Air to Sea and Rail, and of all types of goods.
At a time when our private sector should be readying itself for the opportunities presented by the China Pakistan Economic Corridor, such restrictions are not understandable unless these are to facilitate Pakistan Post's partnership with a chosen foreign company through the tender floated the same day. The Public Accounts Committee (PAC), taking cognizance of this move has directed the Federal Secretary concerned to halt this process till the perusal of the whole record by the parliamentary committee.
Pakistan Post has stated that they have been working on this Tender called "Request for Proposal for Public Private Partnership" in Logistics since 2015. However the tight deadlines given to respond to this very complex and sophisticated Tender suggest that a formality is being done to suit an already decided party. PTI MNA, Dr Arif Alvi speaking on a "Call Attention Notice" in the National Assembly on March -14, revealed that a Chinese firm, has shown an interest in taking over Pakistan Post and the government seems to be courting the firm in competition to the private sector.
The PAC members are said to have questioned the government in this respect. The meeting was held at the Parliament House on March-20, 2018 with Syed Khurshid Shah in the chair to discuss the privatization of Pakistan Post and the audit objections raised by Commerce Ministry and the Ministry of Postal Services. On the other hand, the Minister for Postal Services, Maulana Ameer Zaman has said the government does not have any plans to privatize Pakistan Post. He is said to hold the view that Pakistan Post has started work for revamping of its offices across the country.
The Request for Proposal (RFP) however indicates that Pakistan Post plans to extend services beyond its current mandate of transmission of mail and postal articles to now include traditional logistic services like Warehousing, Distribution, Financial Services, and Supply Chain Solutions.
The industry experts opine that such services may be beyond the mandate of this government department without an amendment in the Post Office Act 1898. Also Pakistan Post's partnership with a foreign company may render a vital national asset in the control of foreign company whose priorities may not converge with our national interest.
The Minister confirmed that a formal process of public-private partnership for restructuring of Pakistan Post was in its final stages and request for proposals has been drafted and approved by the respective procurement committees.
It has been learnt that the proposed Pakistan Courier and Logistics Regulatory Authority Bill contains unduly harsh provisions against the courier and logistics service companies in contravention of fundamental rights of freedom of trade, business or profession and protection of property rights guaranteed under Article 18 and Article 24 of the Constitution of Pakistan.
The Bill requires all Courier and Logistics Companies to acquire a Licence from the Regulatory Authority, and this licence will be revoked on transfer of shares in the company .This restriction on ownership and other unreasonable provisions like restriction on 'funds generated from services'.
If the Bill is passed by the Senate in its present form, and made into a law, the Courier and Logistics Service Providers will not be able to even cease operations as they cannot do this without the prior approval of the proposed Pakistan Courier and Logistics Regulatory Authority.
Such restrictions are not understandable at a time when our private sector is bracing itself for the opportunities in the wake of China Pakistan Economic Corridor.
If the Pakistan Courier and Logistics Regulatory Authority Bill are passed, it will in effect mean nationalization of a critical sector of the country's economy at a time when Pakistan is being presented as an attractive investment destination.-PR