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Pakistan’s logistics industry faces $36 billion losses due to offline trade

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KARACHI – Pakistan’s logistics industry is facing annual losses of approximately $36 billion due to offline trade.

Speakers at Pakistan Logistics and Shipping Summit 2025 shared that the scenario is also contributing to the loss of two to three million jobs in the logistics sector.

Industry leaders emphasized that real-time solutions, including processing, tracking, and other digital facilities, are the only way to tap into growth opportunities and compete with the developed world.

While government processes have become nearly real-time, a significant gap remains, with approximately 70% of private sector activities, including those of freight forwarders and related service providers, still relying on outdated, manual methods.

Experts highlighted various issues linked to foreign trade, noting that only 40% of imported containers return as exports from Pakistan, indicating a serious imbalance in trade.

At the summit, industry leaders, government officials, and private-sector innovators gathered under one overarching theme: technology is the key to transforming Pakistan’s cross-border trade.

Asif Pervez, Founder and CEO of Galaxefi Solutions, said that initiatives such as Digital Pakistan, Uraan Pakistan, and Pakistan Single Window (PSW) have laid a robust foundation for modernization. PSW, in particular, has digitized over 70 government agencies, streamlining customs, licensing, and regulatory processes that previously hindered trade operations.

However, technological gaps, hesitation from SMEs and stakeholders in adopting digital solutions, and slow-paced support for digitization are still preventing Pakistan from keeping pace with other developing countries. This disconnect is not merely a technological lag; it represents lost opportunities.

Economist Jibran Hussain Raza said, “When our competitors embrace real-time systems, they secure trade deals faster, optimize supply chains better, and reduce operational costs dramatically. We risk becoming irrelevant if we do not bridge this digital divide.” The inefficiencies of post-shipment documentation and manual processing not only slow down trade but also result in billions of dollars in losses and a diminished global standing.

Amar Ahmed Mir, Domain Officer of PSW, stated that real-time systems are the solution to fully digitizing international trade, stating that PSW has supported and will continue to support private organizations in introducing real-time facilities.

Najeeb Agrawalla, CEO of 1Link, said that in a world where every nation is racing toward digital transformation, Pakistan must not be left behind. Enhanced infrastructure, government incentives, and a supportive regulatory environment can transform the country’s 70% offline trade ecosystem into a dynamic, globally competitive digital economy.

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