Mian Zahid Hussain, President Pakistan Businessmen and Intellectuals Forum & All Karachi Industrial Alliance, Chairman National Business Group Pakistan, Chairman Policy Advisory Board FPCCI, and Former Provincial Minister Information Technology, has identified Pakistan’s logistics sector as a critical structural bottleneck severely undermining the nation’s export competitiveness and inflating the cost of doing business needs immediate, systemic reforms, including the establishment of a dedicated National Logistics Authority and a major strategic shift toward rail freight.
Mr. Hussain said our logistics costs act as a tax on exports. Without addressing modal imbalances, port inefficiencies, and fragmentation, export growth will remain limited, risking Pakistan’s role in the global supply chain. The logistics sector contributes 15.6% to Pakistan’s GDP, nearly double the 8–9% average for advanced economies, highlighting inefficiencies and high costs.
Mian Zahid Hussain noted that Pakistan was excluded from the World Bank’s 2023 Logistics Performance Index due to poor data and weak stakeholder engagement, which affected investor confidence. Most cargo (94%) is transported by road, which raises costs and causes road damage due to axle load violations. Karachi and Port Qasim operate at a capacity below 45%, with container dwell times of 4–6 days, which is longer than India’s 2.5–3 days and Vietnam’s 1–2 days. Gwadar Port sees minimal use, at 0.36% in FY25.
Mian Zahid Hussain stated that Logistics oversight is split across several federal ministries, hindering the development of a unified policy. He called for the establishment of a National Logistics Authority or Ministry to unify oversight, improve coordination, and reduce road freight from 94% to 50% by developing rail freight corridors and modernizing Pakistan Railways.
Mian Zahid Hussain urged granting formal industry status to trucking for better financing and fleet upgrades. He called for the expansion of warehousing and cold storage facilities near ports to reduce post-harvest losses by 30–40%. Incentives for vessel handling at Gwadar Port were recommended to maximize its strategic role and diversify within the BRI. He believes that targeted investments and reforms can reduce logistics costs and enhance Pakistan’s export competitiveness.
