Pakistan Post may lay off employees as the government considers workforce reductions to control rising financial losses. Federal Minister for Communications Abdul Aleem Khan shared this information during a Senate session on Tuesday.
The government is preparing a policy to reduce operating costs and improve the department’s financial position. Privatization is also being considered as part of the proposed reforms.
Pakistan Post currently records annual losses of around Rs. 12 billion before pension expenses. Including pension costs could increase the total losses to between Rs. 18 billion and Rs. 19 billion.
Government Plans Pakistan Post Restructuring
Responding to a question from Senator Shahadat Awan, Abdul Aleem Khan said the government was reviewing different options. These measures aim to reduce the financial burden on the national postal service.
The minister said a detailed restructuring plan would be presented to the Senate. The proposed policy will explain how the government intends to control expenses while maintaining postal services.
Workforce reductions are among the measures under consideration. Employee-related expenses account for a significant portion of the department’s operating costs.
Pakistan Post employs approximately 22,000 people nationwide. Figures presented to the Senate also listed a provincial staff strength of 15,051.
However, the government has not announced a final decision on employee layoffs. The proposed restructuring policy is expected to clarify the scope of any changes.
Pakistan Post Operates Thousands of Units
Pakistan Post operates 9,707 units across the country. Its network includes departmental post offices, extra-departmental offices, and other formations.
According to figures shared with the Senate, the department has 2,887 departmental post offices. It also operates 6,735 extra-departmental offices and 85 formations.
This extensive network provides postal services to communities throughout Pakistan. Any restructuring plan will need to consider the department’s operating costs and service requirements.
The government is examining ways to make Pakistan Post more financially sustainable. Reducing staff-related expenses and considering privatization could form part of its broader strategy.
Pension Costs Add to Financial Pressure
The department’s financial difficulties extend beyond its regular operating expenses. Annual losses currently stand at approximately Rs. 12 billion before additional pension costs.
Once pension expenses are included, the total financial burden could rise to Rs. 18 billion or Rs. 19 billion. This has increased pressure on the government to review the department’s spending.
The planned restructuring will determine which measures could help reduce these losses. It will also outline how postal services can continue during the proposed changes.
For now, workforce reductions and privatization remain under consideration. Further details are expected when the government presents its restructuring plan to the Senate.
In other related news also read Pakistan Post massively hikes delivery rates
The proposal could have significant implications for employees and the future operations of Pakistan Post. However, the final decisions will depend on the government’s approved policy.
