Logistics & Shipping
The Freight Forwarding and Logistics industry plays a vital role in the overall economy of Pakistan and covers air freight, sea freight, custom clearance, warehousing, road transportation, rail transportation, packing and other allied value added services.
In Pakistan, logistics is an important economic sector exhibiting significant growth, employment and investment potential. The sectors of transport, storage and communication enjoyed the second biggest share of GDP at 13.7% in 2013. The industry has also registered an average growth of 3% and provides employment to approximately 1.5m people (directly and indirectly) in Punjab. For goods producing countries like Pakistan, strong logistics is an essential component of the supply chain and is a key driver for private-sector development and overall economic growth. According to the industry representatives, about 95% of the total freight cargo is moved by road, 3% by rail and the remaining by air and waterways. The freight forwarding industry comprises of about 4,000 firms out of which 500 are registered with the PIFFA. These freight forwarders handle 50 percent of the export tonnage and the rest is handled by clearing agents. The China Pakistan Economic Corridor is progressing and major portion is expected to compete by 2020. For such reasons there is going to be a massive need of logistics due to greater road network.