Government Open to Selling Pakistan Post as Annual Losses Near Rs19 Billion
A Pakistan Post privatisation is now openly on the table. The government is considering selling the state-run postal service and cutting staff to control losses that could reach Rs19 billion a year once pension costs are included, the communications minister told the Senate on Tuesday.
Federal Minister for Communications Abdul Aleem Khan was responding to a question from Senator Shahadat Awan about the department’s worsening finances, ProPakistani reported. He said Pakistan Post’s annual losses stand at about Rs12 billion before pension expenses. When those are added, the total climbs to between Rs18 billion and Rs19 billion.
The minister said the government is preparing a policy to bring operating costs down, and privatisation is one of the options under consideration. A detailed restructuring plan will be presented to the Senate.
Why Pakistan Post keeps losing money
Employee-related spending is one of the biggest drains on the department’s budget. Pakistan Post employs around 22,000 people, while figures placed before the Senate listed a provincial staff strength of 15,051.
The department runs one of the largest retail networks in the country: 9,707 units nationwide, including 2,887 departmental post offices, 6,735 extra-departmental offices and 85 formations. It was recently ordered to monitor parcel shipments for banned kite-flying string ahead of Basant 2027, a reminder of how deeply the service is woven into public life. Maintaining that footprint, with staff costs rising, has left the department dependent on state support year after year.
The minister said workforce reductions are being examined as one of the measures to control spending. The restructuring policy, he added, will spell out how the government intends to cut costs while keeping postal services running for the public.
What a Pakistan Post privatisation would mean
Privatisation of a public utility on this scale would be a major step, and the government will be hoping it can attract the kind of investor interest seen in September’s $720 million foreign investment inflow. Pakistan Post handles mail, parcels, savings accounts and money orders for millions of people, including in areas where private couriers do not operate. Any sale would raise questions about service in remote districts, staff protections and the future of its financial services.
The government has moved on other state sell-offs in recent months. The national airline’s privatisation process has advanced under a new chief executive, with a private consortium taking charge of its turnaround. That parallel will shape how the Senate and the public judge a Pakistan Post sale.
For now, the minister’s statement stops short of a decision. The restructuring plan promised to the Senate will show whether the government chooses a full sale, a partial sell-off, or an internal overhaul with job cuts.
The wider push to cut state losses
The statement fits a broader official drive to shrink the losses of state-owned enterprises at a time when the current account deficit is widening again and every rupee of state support is under scrutiny. Ministries have been told to prepare privatisation and restructuring plans for loss-making entities, and the Senate has been pressing for timelines.
Pakistan Post’s case is politically sensitive. Its 22,000 employees and their unions will resist both a sale and layoffs. The minister’s careful wording, that privatisation is “under consideration” and a plan is coming, suggests the government wants Senate buy-in before it moves.
Frequently asked questions
Is Pakistan Post being privatised?
Not yet. The government says privatisation is under consideration as part of a cost-cutting policy. A detailed restructuring plan will be presented to the Senate before any decision.
How much does Pakistan Post lose every year?
About Rs12 billion a year before pension costs. Including pensions, the figure reaches Rs18 billion to Rs19 billion, according to the communications minister.
How many people work for Pakistan Post?
Around 22,000 employees, with a listed provincial staff strength of 15,051. Employee-related expenses are among the largest contributors to its operating costs.
Will postal services stop if staff are cut?
The minister said the restructuring policy will determine how costs are reduced while postal services are maintained. No service closures have been announced.
