Ranked 95 among 167 countries on the aggregate Logistic performance index (LPI), Pakistan has again lagged behind due to lack of spending on infrastructure projects including airports and highways.
India is at 35th position while Sri Lanka stands at 92nd place in the list. Regional countries including Thailand, Vietnam, Indonesia, Malaysia, and the Philippines are far ahead of Pakistan, according to a report published by the State Bank of Pakistan.
Luckily, Pakistan’s performance on the infrastructure component of the LPI is likely to improve, particularly in the wake of CPEC-related development of roads, railways, and the Gwadar port. In addition, CPEC is also expected to boost the prospects of the shipping industry, and forward-thinking investors are reportedly keen to explore such opportunities.
A more concerted policy focus is required to tackle the shortcomings reflected in other LPI components. These can be viewed as a subset of the ease of doing business, and may thus be added to the agenda items that the country is looking to address in order to attract more FDI and boost exports.
The efficient logistics lie at the heart of competitiveness, both at the firm and country level. They enable firms to connect with domestic and international markets and affect a country’s prospects of integration within global value chains.
Logistics impact trade, job creation, and economic development. Given its importance, there is a need to track logistics performance and take corrective action as needed.