Lahore, Pakistan

How the Logistics Management System will Improve Pakistan’s Economy?

How the Logistics Management System will Improve Pakistan’s Economy?

Logistics and freight forwarding industry have proved to be the backbone of developed countries including Germany, Sweden, Belgium, Austria, and Japan, etc. According to the World Bank report 2018, these five countries stood at the top five rankings to have the best logistics management in the world and the development in these countries is not any hidden fact. Do you know what was Pakistan’s ranking? It was 122nd out of 160. So, is logistic management really important to improve the economic situation of Pakistan? Scroll down to know more about it!

What is logistics and freight forwarding industry?

Logistics includes many activities related to the effective and efficient movement of raw material, semi-finished goods, and finished goods. This movement can be from supplier to the manufacturing unit, from production line to warehouses and from inventory store to the customers. In a nutshell, logistics is crucially important for any company to operate well in the market and get a better market position.

On the other hand side, freight forwarding makes it possible to deliver national goods to the international market or vice versa by acting as an intermediary body.

Collectively, it makes an exceptional industry which has a great potential to support the trade activities of the country. 

Logistic industry in Pakistan:

Interestingly, neither Pakistan has any proper Ministry of Transportation nor it pays attention to the performance of this sector. As a result, the weak infrastructure is in front of us. Here, we need to know that developed countries spend a huge amount on their logistics industry to back their economy. So, we can easily predict that the development of the logistics industry would definitely help Pakistan to overcome its economic crisis.

Importance of the logistic industry:

Firstly, the logistic industry connects the national market with the international market. So, the country with the best logistics systems is active in international trading. We all know that Pakistan has a negative balance of trade where we have imported more products and services than the exports of our own goods and services. At this point in time, the development of infrastructure and the ‘Ministry of Transportation’ is important.

Secondly, Pakistan is blessed with a geostrategic position in the world map and logistics industry can exploit more opportunities. Let’s take the example of China which is one of the top importers of crude oil. It takes sea route to import crude oil from the Middle East but after CPEC development, China can easily import crude oil by land route. Well, it would be the cost-efficient and secure route for China to import crude oil. In this case, the logistics industry can improve the economic situation of Pakistan because there would be more employment that can work for the development of the country.

Thirdly, the better logistics industry can improve our relations with several countries. For instance, Afghanistan is not connected with warm waters and Pakistan gives it the land route to the Arabian Sea. Apart from this, India and Afghanistan are good trading partners and to receive goods from Afghanistan, India is dependent on Pakistan’s route. Here, the management of logistics can maintain peace and prosperity in the region.

The need for logistics management and vehicle tracking:

The developed countries have the ‘Department of Transportation’ which manages the logistics industry. The key roles of the department are to plan, control, monitor and evaluate the effective movement of logistics. Also, it reduces the cost of transportation and increases customer satisfaction but how? Following are the necessary steps that every logistics management takes:

  1. Keeps healthy relations with the vendor.
  2. Periodically, maintain the vehicles.
  3. Choose cost-effective routes of transportation
  4. Updates delivery methods
  5. Use advanced technology to speed up the operations
  6. Provides training to the staff
  7. Sets rules and regulations for the whole industry

Moreover, the department motivates collaboration among service providers for the success of the industry. Apart from this, the safety of the vehicle is crucially important. For the purpose, the vehicle tracking system is installed in the vehicles. It not only reduces unauthorized use of the vehicle but it also notifies the health and safety of the drivers.


The development of logistics industries has changed the fates of many nations and Pakistan can become one of them. To become one of them, Pakistan should establish the ‘Ministry of Transportation’ to improve the logistics industry. Ultimately, it would play a vital role in improving the economic condition of Pakistan.

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