KEY MESSAGESThe estimated potential of Pakistan’s logistics sector is USD 30.7 billion but it has not been realised as yet. Where is it today?akistan is nowhere in the global scenario according to the recent Logistics Performance Index prepared by the World Bank 2023.The modal shares are highly skewed towards roads accounting for more than 92 percent of passengers and 96 percent of freight. On average this should be 60 percent.he motorways and highways constitute less than 10 percent of the total road network but carry almost the entire freight traffic.he inadequacy and inefficiency of the public transport system in Islamabad bring more private vehicles on the roads.Heavy losses in the railway sector have necessitated an increase in grants from PKR 45 billion in 2022-23 to PKR 55 in 2023-24. Per-passenger grants amount to PKR 1,261 and PKR 5,556 per ton for freight in 2021-22.Pakistan Railways has so far failed to adopt the open access policy approved in 2011, which reflects bureaucratic hurdles and governance failures.PIDE survey reveals that freight forwarders do not use Pakistan Railways because of the non-availability of relevant information, but mainly because of the nonreliability of the services.Pakistan Post has 10,293 post offices in Pakistan, of which 87 percent are incurring losses, while TCS has a market share of 43 percent with less than 10 percent of branches than Pakistan Post.The labour unions in public sector organisations have played a major role in resisting reforms, ensuring inefficiencies and substantial losses to the exchequer.