Pakistan Post is facing one of its most challenging financial years, with growing operational costs and delayed digital transformation efforts impacting its overall performance. As the organization joined global celebrations for World Post Day on Thursday, concerns over its financial sustainability were brought to the forefront. According to the Universal Postal Union’s latest report, Pakistan ranks 55th among 166 member countries in postal performance. Despite a slight improvement in earnings compared to the previous year, the department’s financial gap remains substantial. During FY 2024–25, Pakistan Post recorded an income of Rs10 billion against an expenditure of Rs21 billion, missing its revenue target of Rs11.5 billion.
Officials attributed the shortfall largely to the withdrawal of major projects that were expected to boost revenue. The Punjab Nigehban Ramzan Project, which was projected to contribute Rs1 billion, was cancelled, while income streams from driving and arms license renewals, as well as provincial tax collections, were also discontinued. Currently, the majority of Pakistan Post’s income is derived from traditional postal services and utility bill collections, leaving limited room for innovation or diversification. Although earnings were Rs1 billion higher than last year, the department continues to face mounting financial pressures that threaten its operational efficiency.
Sources within the organization identified the slow pace of digitalisation as one of the primary causes behind the department’s financial strain. The lack of investment in technology has led to the discontinuation of previously profitable services such as pension payments and postal savings accounts, which once contributed between Rs10–12 billion annually in commissions. The transition toward a modern, technology-driven postal system has been hindered by insufficient funding, resulting in delays to key automation and digital integration projects. However, Pakistan Post has recently begun exploring new initiatives with organizations such as BISP and various utility companies to revive its revenue streams and restore financial balance. These partnerships are expected to introduce digitally enabled services that can enhance efficiency and public convenience over time.
Officials emphasized that regaining public trust and improving profitability will require significant internal reforms, including timely mail delivery, better complaint resolution mechanisms, and the creation of professional marketing teams capable of promoting postal and digital services effectively. Despite the challenges, Pakistan Post remains focused on its mission to connect people and communities through reliable services. During the World Post Day ceremony held at its headquarters in Islamabad, Director General Samiullah Khan hoisted the UPU flag, and Additional DG (Operations) delivered the annual UPU message highlighting the global postal sector’s commitment to innovation, inclusion, and reliability. In a notable gesture, Pakistan Post issued a commemorative stamp on dyslexia awareness, becoming the first postal administration in the world to do so, reflecting its ongoing efforts toward social inclusion and education.
While the road to full digital transformation remains long, Pakistan Post’s leadership continues to explore strategies to modernize operations and strengthen its service delivery model. As new partnerships and technology initiatives take shape, the organization aims to rebuild financial stability and reaffirm its role as a vital public service institution in Pakistan’s evolving digital landscape.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.