LOGISTIC COST STUDY OF EXPORT RELATED COMMODITIES OF PAKISTAN

Abstract

The goal of the study is to identify the magnitude of the logistical costs in export transactions. Logistical costs and lead times have a significant impact on the competitiveness of the Pakistan business environment. The high logistic costs are hindering Pakistan’s export in international market. Due to in-consistent government policies, legislation, lengthy and tedious procedures, and lacking infrastructure facilities the logistics cost are high. Every major political change has witnessed the birth of a new set of policies, often substantially different from the earlier ones. Furthermore, high logistics cost are also affected due to lack of adequate development strategies for growth and concerned departments are slow to adopt usage of advanced technologies and management systems. The globalization of business and markets of the world is making it essential for all the countries to conduct their international trade as per international practices based on the standard documents and procedures adopted by the international community. The same is true for Pakistan. The improved transportation and logistics would reduce the logistical cost and make the industry more competitive and productive. This will result in growth of economy and creation of more jobs and opportunities. Thereby, improved transportation and logistics not only provides better access to domestic and foreign markets for local products but also helps in poverty alleviation.