“The role of trucking will increase up to four times with the collapse of rail freight in the country,” he added. - File photo

LAHORE: Lack of official support to logistics and supply chain management is hampering growth, and a loss of 2pc of the GDP is being suffered annually.

This was stated by experts at a conference and exhibition on logistics and supply chain management.

In addition to loss to the GDP, the business community was using foreign carriers and providing a business of $1.5 billion per annum to various airlines.

Vice President of Saarc Chamber of Commerce and Industries Iftikhar A Malik inaugurating conference, termed logistics and supply chain as lifeline of economy.

He, however, expressed concern over lack of initiative on the part of the business community for improving air, sea, rail and road logistics and supply chain system.

“The private sector must stand up and face challenges rather than looking for official support. If warehouses can be built overseas, why other infrastructure cannot be improved within the country,” he said.

Outlining the problems faced by the logistics and supply chain management, Moin Ahmad Malik, a leading expert and former PIFFA chairman, said that India has emerged as top logistics hub because of official support.

On the contrary, Pakistan was at the bottom among South East Asian countries.

Although trade with India would would create opportunities, but border facilities were not up to the mark.

Railways couldn't even cater to passenger transportation needs, leave alone freight transportation within the country.

The only option of goods transportation was through trucking system, which, he believed, was disintegrated after the government withdrew waiver of 16 to 17 per cent on trucking.

On the top of it, trucking was an un-organized sector and corporate sector was reluctant to use it.

“Government policies have been one step forward and five steps backwards,” he said, adding that rising cost of fuel and electricity coupled with decades old trucks and bad roads infrastructure were badly hurting the sector.

Due to this, up to 30 to 35 per cent perishable goods, like fruits and vegetables are lost during transportation from farm to market.

He emphasised the need for preparing trained human resource by establishing vocational training institutes to streamline road transportation sector.

Tahir Malik, ACAAP chairman criticised the government for failing to cater to improve the air freight to support business community.

He said that the national carrier didn't have a single cargo aircraft, no proper cargo complex was built in Pakistan till 2001 in addition to non-availability of shells at air freight units for perishable goods, which resulted in decay of a large quantity of items, like mangoes and kinnos as well as pilferage.

Lahore Chamber of Commerce and Industry (LCCI) President Irfan Q. Shaikh stressed the need for removing impediments to logistics and supply chain management, which would be of paramount importance in trade with India and Afghanistan.

“The role of trucking will increase up to four times with the collapse of rail freight in the country,” he added.

Mohammad Nadeem Khan, another leading logistics expert, underlined the need for following modern trends and technologies to facilitate consumers and capture the market.

He advised the traders and business community to facilitate customers on the Internet, social networking sites with relevant information and form virtual and digital contacts to meet the market requirements in a more effective manner.

He was also of the view that attacks on Nato containers on the way were extremely disastrous for poor transporters because such acts of sabotage were not doing any harm to Nato which makes payments to transporters after reaching the destination.

The exhibition was jointly organised by the Pakistan International Freight Forwarders Association, Air Cargo Agents Association of Pakistan (ACAAP) and Publicity Channel.