Pakistan Post Office Department (PPOD) is managing billions of rupees in cash-based transactions on annual basis, but in the absence of accurate real time reporting of its transaction, an obstacle is created in introducing new business models and revenue streams, says the Auditor General of Pakistan (AGP).
The “Audit Report on the accounts of Postal Sector Audit year 2021-22” a copy of which is available with ProPakistani noted that Pakistan Post Office faces severe issues in its financial reporting which is based on manual processes and a legacy accounting system.
Audit observations amounting to Rs 3.503 billion were raised in the report during the current audit of the department. This amount also includes recoveries of Rs 1.28 billion as pointed out by audit.
PPOD needs to move fast on digitization and fully map and trace its customer records and financial transactions, it recommended.
PPOD has a broad and varied role to play beyond provision of communication links for individuals and businesses. However, the existing manual record keeping and antiquated systems are unable to meet the rising demands. PPOD made an effort by investing Rs. 831.084 million in last nine years for digitization of financial services but all such efforts have remained largely unsuccessful due to mismanagement, inefficiency & loose controls, the report noted.
One aspect of PPOD operations is its under-utilized resources. PPOD owns precious land at prime locations which can be utilized towards beneficial projects for revenue generation.
The report noted that courier and logistics sector is undergoing a rapid transformational change in Pakistan, as consumers are now trusting online vendors and shifting to online shopping. PPOD should tap the huge e-commerce business and compete with newly established goods delivery chains.
The entry of digital platforms offering speedy parcel delivery services has given a new dimension to parcel delivery. A huge network of post offices and operational fleet can be leveraged to gain sizeable market share in electronic commerce. PPOD may also focus on revival of its core business i.e. mail and parcel delivery which has great potential for revenue generation in the future.
The postal sector carries a huge potential for business growth for both public and private sectors. PPOD can substantially increase revenue by making itself a purely commercial organization. It needs to work on exploring new vistas thrown at it by the rapid growth of logistics. It can cork on finding new partners by offering its huge infrastructure and by investing in technology at the same time. However, while doing so the issues of transparency should always be a priority. An all-encompassing ERP is need of the hour in bringing transparency and operational efficiency to PPOD. By improving the mechanism of post offices across Pakistan, it can restore public confidence and compete with private courier companies which do not have their offices in far flung areas, the report recommended.
PPOD has taken some initiatives to expand its customer base through establishing Digital Franchised Post Offices (DFPOs) to streamline booking and real time tracking and new services like same day delivery of parcels and packets within the city, Electronic Money Order (EMO) and Pakistan Remittance Initiative (PRI) for delivery of international remittances etc. EMS Plus has also been initiated to promote e-commerce and online business in line with modern techniques allowing delivery of parcels weighing up to 30 kg to Australia, Japan, Saudi Arabia, Thailand, UAE and UK.
Source: Pro Pakistan