Postal Service proposes rate hikes as Pakistan Post deficit crossed Rs 7 billion

 
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Islamabad, June 20 (TNS): Pakistan Post has decided to approach the federal cabinet to approve an increase of Rs 10 to 15 in cost of a letter delivery to reduce the deficit which crossed 7 billion rupees per annum.

According to the proposal of Pakistan Post, cost of letter delivery is lower than that of the private courier companies and should be fixed up to Rs 20.

The federal government has given Pakistan Post target to reduce its deficit by Rs. 2 billion during the fiscal year 2017-2018 but deficit of this “White-Elephant” is being increased by one billion rupees annually.

The government has approved over Rs 17.5 billion for Pakistan Post during fiscal year 2017-18 while its income has been estimated by Rs 13 billion.

Pakistan Post deficit is being increased by Rs. 1 billion per annum.

To tackle the situation, it proposed to increase the cost of letter delivery from Rs 8 to 20 rupees to reduce annual deficit but it needs approval from federal cabinet.

The Pakistan Post had sent similar summery to Federal Cabinet in 2012 to increase the price of letter from Rs 8 to 15 rupees but the proposal was not approved.