‘Logistics inefficiencies hamper trade’, says FPCCI

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has identified the logistics sector as a major structural constraint to trade and investment, with inefficiencies costing the economy significantly more than in advanced economies. FPCCI President Atif Ikram Sheikh said Pakistan’s logistics sector accounts for 15.6pc of GDP, compared to 8-9pc in developed economies such as the United States, Japan, and Singapore. He warned that this high cost continues to erode Pakistan’s trade competitiveness. Citing the FPCCI Policy Advisory Board’s latest policy brief, “Pakis­tan’s Logistics Performance and Its Impact on Trade Competitiveness,” Mr Sheikh highlighted the country’s steep fall in the World Bank’s Logistics Performance Index (LPI) — from 68th position in 2016 to 122nd in 2018. Notably, Pakistan was excluded altogether from the 2023 index.