Logistics isn’t just about moving goods from one place to another—it’s the lifeline of an economy. And in Pakistan, where businesses are expanding, industries are modernizing, and trade is evolving, logistics plays a game-changing role. From the bustling commercial hubs of Karachi to the remote industrial zones of Balochistan, the efficiency of logistics determines how smoothly goods, services, and raw materials flow across the country.

But here’s the problem—Pakistan’s logistics industry, despite its massive potential, faces persistent roadblocks. Inconsistent regulations, outdated infrastructure, financing struggles, and security risks are just a few of the hurdles that keep businesses from reaching peak efficiency. And if that wasn’t enough, Pakistan ranks 122nd in the World Bank’s Logistics Performance Index (LPI)—a stark contrast to regional competitors like India, Bangladesh, and Iran.

So, what’s holding the industry back? And more importantly, how can businesses navigate these challenges and optimize their logistics operations?

At MH Logistics Private Limited, we create efficient, reliable, and technology-driven logistics solutions to help businesses thrive in a highly competitive market. Below, we break down the key challenges facing Pakistan’s logistics sector and explore practical solutions to overcome them. Let’s dive in!

The Current State of Pakistan’s Logistics Industry

While logistics is a vital enabler of trade and commerce, Pakistan’s logistics sector has yet to reach its full potential. The country’s ranking in the World Bank’s Logistics Performance Index (LPI) remains low, at 122 out of 160 countries (as of 2018). Comparatively, regional competitors such as India (ranked 44), Bangladesh (ranked 64), and Iran (ranked 100) have made more substantial improvements in logistics infrastructure and policy implementation.

Why Does This Matter?

Pakistan’s poor ranking in logistics efficiency indicates that the country is struggling with slow supply chains, inefficient freight movement, weak multimodal connectivity, and a lack of regulatory reforms. This hinders trade competitiveness, discourages foreign investment, and increases the cost of doing business.

If Pakistan is to emerge as a regional logistics hub, particularly given the opportunities presented by the China-Pakistan Economic Corridor (CPEC), significant reforms and infrastructure investments must be prioritized.

Key Challenges in Pakistan’s Logistics Sector

Despite the strategic importance of logistics, the sector grapples with long-standing issues that need immediate attention. Some of the most pressing challenges include:

1. Lack of Industry Recognition and Policy Reforms

The logistics industry in Pakistan is not formally recognized as an independent sector by the government. The trucking industry, freight forwarding services, and warehousing facilities operate under fragmented regulations, limiting the sector’s ability to access government incentives, tax benefits, and structured policies for modernization.

What Needs to Change?

• The formal recognition of trucking and freight services as an industry would encourage structured policies, investment incentives, and better regulatory oversight.
• A centralized regulatory body should be established to streamline compliance processes and facilitate smoother trade and supply chain operations.

2. Poor Infrastructure and Road Network

Pakistan’s road network carries over 90% of freight movement, yet the state of infrastructure remains inadequate. Roads are often in poor condition, leading to delays, vehicle breakdowns, and increased maintenance costs. Additionally, insufficient multimodal transport options—such as rail, waterways, and air freight connectivity—further strain the road transport sector.

How Can This Be Addressed?

• Investing in modern highways, bridges, and freight corridors to support heavy cargo movement.
• Reviving and upgrading the railway system to provide cost-effective and reliable freight transport.
• Encouraging public-private partnerships (PPPs) to finance and develop logistics infrastructure.

3. Axle Load Law Implementation and Overloading Issues

Overloading remains a critical concern in Pakistan’s logistics sector. Trucks often exceed the permitted weight limits, leading to rapid deterioration of road infrastructure, increased fuel consumption, and higher vehicle maintenance costs. Overloaded trucks also pose a serious safety hazard, contributing to fatal road accidents.

Steps to Improve Axle Load Compliance

• Strict enforcement of axle load regulations to prevent overloading and improve road safety.
• Investment in modern weighbridge facilities across highways and industrial zones for real-time weight monitoring.
• Greater awareness and training programs for trucking companies and drivers on the economic and safety benefits of adhering to axle load laws.

4. Security Concerns and Roadside Thefts

The security of cargo is a growing concern for businesses operating in Pakistan. Freight theft, cargo hijacking, and roadside robberies often occur along high-risk routes, leading to financial losses and supply chain disruptions.

Solutions to Enhance Logistics Security

• Increased law enforcement presence at major highways and cargo bottlenecks.
• Technology-driven solutions, such as GPS tracking, real-time surveillance, and digital freight monitoring, to prevent theft and ensure shipment safety.
• Collaboration between logistics companies and security agencies to establish safer trade routes.

5. Financing and Investment Constraints

One of the biggest hurdles for small and medium-sized logistics companies is the lack of affordable financing options. High interest rates, limited access to loans, and stringent banking regulations make it challenging for logistics businesses to upgrade fleets, modernize infrastructure, and invest in digital solutions.

Addressing the Financing Gap

• Introducing specialized financial products tailored for the logistics industry, such as collateral-free loans and fleet leasing programs.
• Encouraging partnerships between banks and logistics firms to create customized loan packages for fleet expansion.
• Government-led incentives to promote investment in green logistics and energy-efficient transportation.

The Way Forward: A Roadmap for Sustainable Growth

Pakistan’s logistics industry is at a critical juncture. To fully capitalize on trade opportunities and strengthen its global supply chain position, the country must address the above challenges through policy interventions, infrastructure investment, and digital transformation.

Key Recommendations for a Competitive Logistics Sector

1. Policy & Regulatory Reforms
   • Official recognition of logistics and trucking as a formal industry.
   • Establishment of a national logistics policy framework.
2. Infrastructure Modernization
   • Investment in multimodal transport networks to integrate road, rail, and air cargo logistics.
   • Expansion of logistics parks and freight villages to improve warehousing capabilities.
3. Technology Adoption
   • Implementation of blockchain-based freight tracking, AI-driven supply chain analytics, and IoT-enabled fleet management.
   • Promotion of digital freight matching platforms to enhance efficiency.
4. Workforce Development & Training
   • Capacity-building programs for drivers, logistics managers, and warehouse operators.
   • Introduction of road safety and compliance training to minimize accidents and vehicle downtime.
5. Security & Risk Management
   • Deployment of smart surveillance solutions and route optimization technologies.
   • Strengthening of law enforcement and cargo protection policies.

Conclusion: A Future-Ready Logistics Industry

Pakistan’s logistics industry has the potential to be a regional trade hub, but persistent inefficiencies, infrastructural constraints, and policy gaps must be addressed to unlock growth.

At MH Logistics Private Limited, we are committed to delivering seamless, secure, and technology-driven logistics solutions that help businesses navigate industry challenges and optimize their supply chains.

✅ Unlock efficiency. Ensure security. Drive growth.

📞 Contact MH Logistics Private Limited today to streamline your logistics operations with expert-driven solutions.