The logistics system of Pakistan plays a vital role in driving trade, commerce, and economic growth. With its strategic geographical location, connecting South Asia, Central Asia, and the Middle East, Pakistan has the potential to become a global logistics hub. However, despite its advantages, the logistics sector faces multiple challenges that need immediate attention.

The Importance of Logistics in Pakistan

Logistics is the backbone of any economy, ensuring smooth supply chains for goods, services, and raw materials. In Pakistan:

• Over 90% of international trade is carried through ports like Karachi, Port Qasim, and Gwadar.
• The China-Pakistan Economic Corridor (CPEC) has opened new trade routes, linking Pakistan to China and beyond.
• Road and rail networks connect industries with markets domestically and internationally.

This shows that logistics is not just a supporting function—it is a driver of growth and competitiveness.

Key Components of Pakistan’s Logistics System

1. Road Transport

Roads handle over 90% of freight traffic in Pakistan. The development of motorways and highways under CPEC has improved connectivity, but poor road conditions and rising fuel costs remain challenges.

2. Railways

Pakistan Railways has the potential to be a cost-effective freight carrier. Unfortunately, outdated infrastructure, slow speed, and lack of modernization make it underutilized. Revival efforts, however, are underway.

3. Ports and Shipping

Karachi Port, Port Qasim, and Gwadar Port are Pakistan’s major gateways to global trade. While capacity has increased, inefficiencies and lack of automation reduce competitiveness. Gwadar, in particular, is expected to become a regional logistics hub in the coming years.

4. Air Cargo

Air freight in Pakistan is still limited and costly, mainly used for high-value goods. With increasing exports in textiles, IT hardware, and perishables, there’s a huge opportunity for growth.

5. Warehousing and Supply Chains

The warehousing sector lacks modern facilities like cold storage, automation, and digital inventory systems. E-commerce growth, however, is pushing for smart warehousing solutions.

Current Challenges in Pakistan’s Logistics

• High transportation costs due to fuel price hikes.
• Lack of digitalization in supply chain management.
• Underdeveloped cold chain for perishable goods like fruits, vegetables, and medicines.
• Inefficiency at ports, leading to delays and higher trade costs.
• Weak integration between road, rail, air, and sea transport systems.

Opportunities for Growth

Despite challenges, Pakistan’s logistics sector has immense potential:

• CPEC Investments are transforming road and rail networks.
• Gwadar Port can serve as a regional trade and transshipment hub.
• Digital logistics platforms are emerging, offering tracking, e-payments, and fleet management.
• E-commerce growth (Daraz, Foodpanda, Bykea, etc.) is driving demand for last-mile delivery solutions.
• Public-Private Partnerships (PPP) can modernize warehousing and cold chain facilities.

The Way Forward

To unlock its logistics potential, Pakistan must:

• Invest in infrastructure modernization.
• Promote digital transformation of logistics and supply chains.
• Encourage private sector participation in railways and warehousing.
• Build an integrated multi-modal transport system (road, rail, sea, air).
• Support green logistics with eco-friendly vehicles and smart fuel systems.