'Logistics sector faces $36bnloss due to offline trade'

KARACHI: The logistics industry is incurring annual losses of approximately $36 billion due to offline trade, which is also contributing to the loss of two to three million jobs in the sector.

These concerns were highlighted by experts at the Pakistan Logistics and Shipping Summit 2025 on Thursday. Industry leaders emphasised that real-time solutions, including digital processing, tracking and automation, are essential for unlocking growth opportunities and competing with the developed world.

While government processes have largely transitioned to real-time systems, a major gap remains, with nearly 70 per cent of private sector operations -- including freight forwarders and related service providers -- still dependent on outdated, manual methods.

Experts also pointed to critical issues in foreign trade, noting that only 40 per cent of imported containers return as exports from Pakistan, reflecting a severe trade imbalance. Founder and CEO of logisticstech firm Galaxefi Solutions Asif Pervez highlighted that initiatives such as Digital Pakistan, Uraan Pakistan and the Pakistan Single Window (PSW) have laid a strong foundation for modernisation. The PSW, in particular, has digitised over 70 government agencies, streamlining customs, licensing, and regulatory processes that previously hindered trade operations.

However, technological gaps, reluctance among SMEs and stakeholders to adopt digital solutions, and slow-paced support for digitisation continue to hold Pakistan back. This is not just a technological lag -- it represents billions of dollars in lost opportunities.

The CEO of Galaxefi stressed that the private sector is ready and actively investing in advanced real-time systems. Economist Jibran Hussain Raza remarked, “When our competitors embrace real-time systems, they secure trade deals faster, optimise supply chains better, and significantly reduce operational costs. If we do not bridge this digital divide, we risk becoming irrelevant.” The inefficiencies of post-shipment documentation and manual processing not only slow down trade but also result in substantial financial losses and a diminished global standing.

Domain Officer of PSW Amar Ahmed Mir stated that since the PSW’s launch in 2022, the organisation has integrated various government entities and stakeholders into its system. It has also connected the private sector to facilitate seamless public-private collaboration in foreign trade.

Responding to a query, he endorsed real-time systems as the key to fully digitising international trade, stating that PSW has supported and will continue to support private organisations like Galaxefi in introducing real-time solutions.

Najeeb Agrawalla, CEO of 1Link, also addressed the summit, stressing that in a world rapidly moving towards digital transformation, Pakistan must not be left behind. He emphasised that enhanced infrastructure, government incentives and a supportive regulatory environment could transform the country’s predominantly offline trade ecosystem into a dynamic, globally competitive digital economy.