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CPEC AND ITS IMPACTS A Case of Logistics Industry In Pakistan

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DOI: 10.23451/mjls.v1i1.2

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 CPEC AND ITS IMPACTS: A Case of Logistics Industry In Pakistan

Danish Zahid Rajput

ABSTRACT

China Pakistan Economic Corridor is a framework and collection of infrastructure projects

with the aim of developing ties between China, Pakistan as well as other Asian countries.
CPEC aims to enhance the global trade among various regions of Asia by proving them a
route that will reduce transit time and cost resulted in fair trade. Successful implementation of
CPEC project in Pakistan needs efficient supply chain, trade logistics and transport system.
But current infrastructure of logistics sector in Pakistan lack modern facilities, innovation and
strategic management and administration. It is not so developed to reap the potential benefits
form CPEC. The study shows the impact of CPEC on logistics sector, which is the backbone
of supply chain system. It includes warehousing and storage capacities, product management,
production, procurement, inventory, stock, security etc.

Security concerns, lack of systematic management and information system, non-technical

personnel, communication gaps, integration among various levels and underdeveloped
transport and logistics infrastructure are some major barriers for such a developing country
like Pakistan which lead behind the country onto the road of progress.

What changings or how CPEC can affect the logistics sector and what potential changes we
have to brought in logistics sector to get potential benefits form CPEC, Is the focal point of
this paper. The paper will discuss all these issues in detail. Firstly, focus will be on areas in
which CPEC is contributing. Secondly, how it can affect the logistics industry. Thirdly, major
hurdles in developing the logistics sector and lastly the discussion will be on how we can
overcome this problem.

1. INTRODUCTION:

Pakistan signed CPEC project with China in 2013, which is a part of China’s (OBOR)
project. CPEC will connect China’s northwestern region (Kashghar) to Pakistan’s
northwestern region Baluchistan (Gwadar port), through network of highways, railways,
airports. The largest land corridor that will cover approximately 3000km, will benefit in trade
and tourism. It is considered to be completed by 2030. China originally invest $47 billion in
this project and is worth more than $70 billion as of 2020.

The major developments that CPEC can brought in Pakistan includes; construction of
Gwadar port, energy pipelines, industrial revolution, better logistics and transport system. For
better transport and logistics development one of the major hurdle is outdated infrastructure
of construction units that have slowed down the economic progress of Pakistan. CPEC
proposed to upgrade Pakistan's logistics infrastructure and strengthen its economy by means
of modern transportation networks, various energy projects, and special economic zones.
CPEC put emphasis on industrial relocation and creation of Special Economic Zones (SEZs)
which has much potential for Pakistan’s logistics industry, providing the government and key
institutions by define a strong road plan and devised efficient policies to implement it.

The objectives of this paper are to bring at front the current situation of logistics industry,
analyzing the basic issues and forthcoming challenges and what can be the impact of CPEC
on logistics industry of Pakistan. Pakistan is unable to develop its domestic logistics
infrastructure, due to lack of resources and troubled economy which causes the logistics cost
very high. After CPEC phase I, Pakistan will be able to develop its transport system and less
travel time between trading hubs.

There is a great need to make logistics system and transport infrastructure efficient and
effective. A developed and strengthen infrastructure along with global supply chain system, is
crucial for Pakistan to enhance its national and international trade. A developed road and
railway system will be incorporated to tackle all the hurdles in this regard and it would only
be possible to go hand in hand with China Pakistan Economic Corridor. This research study
is conducted for the purpose of finding the change that CPEC brings in logistics sector of
Pakistan that how CPEC will have significant impact on logistics industry and sustainability
of economic growth.

2. RESEARCH METHODOLOGY:

This article adopts the qualitative and descriptive research approach while explaining the data
and determining the results. Furthermore, data is being collected through secondary sources
which include conventions as well as scholarly articles and e-journals.

3. LITERATURE REVIEW:

When we talk about the term logistics various notions comes to our mind, if we look back in
history logistics includes only transport system and warehousing. Currently it not includes
transport and warehousing but also transport infrastructure, planning packaging, inventory
management, supply chain, production units to markets and end customers. There are bulk of
discussion about trade logistics and transport system of Pakistan under the CPEC.

The Center of Excellence (Nov, 14, 2018) is the first official portfolio of CPEC. It put
emphasis on fast tracks and networks that minimize trade deficits and provide value addition
to existing imports and exports which cause surplus to economy.

International Journal of Asian Social Science (Nov, 2018), throws light on how logistics
investment is key concern to China Pakistan Economic Corridor and what can be the future
challenges for Pakistan. It talks about how logistics progress and its consequences affect the
economy of Pakistan.

The Journal Contemporary South Asia (volume 28) talks about CPEC and its future
prospects and challenges (18, Sep, 2019). The paper discusses about socio-economic
development. It explores constraints related to logistics industry resulted in sluggish
economy. In today’s competitive environment efficient logistics industry is key to progress
but Pakistan lack organized and integrated system, human resource for its proper functioning.

Pakistan still stick to the old notions of logistics sector. It would only be possible through
attractive financing facilities. Certain reforms are needed in this respect.

4. OVERALL IMPACT OF CPEC ON PAKISTAN’S ECONOMY:

CPEC can contribute to Pakistan’s economic growth and socio-economic development in a

great way. It will also enable the country to improve its geostrategic importance by emerging
as an economic hub in the region. CPEC aims to provide the following edge:
  It will provide regional connectivity (Khanjrab up to Kashgar)
 It aims to focus at developmental procedure among many sectors like transport,
supply chain, inventory with a goal of promoting global trade
 It will develop management in port constructions, minimize travel and transport cost.
 It will bring transport of the rail services at balance with international standards.
 It will focus on modernizing the trucking system which results in reduce damage of
trading goods.
 It helps in developing a sustainable, well-organized, consistent transport system.
 Establish inland water transport in rivers and canal in phases.

4.1 CPEC Investment Projects

China Pakistan economic corridor aims at promoting the economic and strategic connectivity
between Pakistan and China and it will play a vital part in integrating various regions of the
Asia. It is a structure of connectivity between various regions. The result is expected to
enhance financial and economic development. CPEC has following five main initiatives:

1. Gwadar port area, Baluchistan, coastal highway, international airport.

2. Energy power plant, pipelines and its transmission.
3. Logistics and Transport, such as vast network of road and railway linkages. (Eastern,
westerns and central alignment)
4. Foreign investment, Industrial collaboration.
5. Mutual interest of growing politico economic future.

China invests approximately $47 billion and its details is given in the following table:
4.2. CPEC Investment

Project US$ M

Energy 29,336

Transport , Infrastructure, Roads 11,112

Rail network 3,690

Mass transit in Lahore 1,600

Gwadar Port 694

Others 44

TOTAL 46,476

Source cpec.gov.pk/

4.3 CPEC Energy Projects:

In Pakistan among many others, electricity short fall is the main issue and it is considered the
backbone of country’s economy. Pakistan is greatly affected by this termite since last
decades. This crisis has penetrating in all main sectors and have serious impact on economy
and budget. There is ever increasing demand for it so, it has significance importance in the
corridor projects.

Following projects is administered under CPECError! Bookmark not defined.:

 Port Qasim electric company worth of1980$

 Sahiwal coal fired power plant worth of 1600$
 Gwadar coal power project worth of 360$
 Engro Thar coal fire worth of 1000$
 Quaid e Azam solar park worth of 1650$
 And many other ongoing energy projects totally worth of 29,336.
4.4 CPEC TRANSPORT INFRASTRUCTURE PROJECTS:

Following project is implemented under CPEC which will lower the cost of trade,
transportation costs and saves time. It will provide easy and fast trading facility inside and
outside the country and make sure the availability of trading goods in local or international
markets.
# PROJECTS Length (KM) US$ M

1 KKH Phase II (Thakot – Havelian Section) 118 1350

2 Peshawar-Karachi Motorway (Multan-Sukkur 392 2889

Section)

3 Khuzdar-Basima Road N-30 110 19.19 Billion

Rupee

4 Upgradation of D.I.Khan (Yarik) - Zhob, N-50 210 76 Billion

Phase-I Rupee

5 KKH Thakot-Raikot N35 remaining portion 136

RAIL SECTOR

6 Expansion and reconstruction of existing Line ML-1 1830 6808

7 Havelian Dry port (450 M. Twenty-Foot 65

Equivalent)

Source cpec.gov.pk/

4.5 CPEC GWADAR PORT PROJECTS:

A deep sea port located in Baluchistan, which will pave the way for mutual trade among
middle Asia Africa and East Asia. Gwadar port occupies the key position and provide a
gateway to Pakistan for tremendous boost in economy.

# Project US$ M

1 Gwadar East-Bay Expressway 168

2 New Gwadar International Airport 230

3 Construction of Breakwaters 123

4 Dredging of berthing areas & channels 27

5 Development of Free Zone 32

6 Pak China Friendship Hospital 100

7 Pak-China Technical and Vocational Institute at Gwadar 10

8 Gwadar Smart Port City Master Plan 4

Source cpec.gov.pk/

4.6 CPEC SIGNIFICANCE FOR LOGISTICS SECTOR:

Pakistan is trying to upgrade the national transportation infrastructure. The development of

the transportation network and the logistics infrastructure depends largely on the
development of the special economic zones (SEZs) and the industrial parks that are end to
end the China Pakistan Economic Corridor.

CPEC investments in certain areas such as, industrial centers, Special Economic Zones
(SEZs), along with development of cargo villages and trans-shipment hubs, can provide a
basis for the growth of logistics sector.

In CPEC road and railway investments are about $11,112 and $3690 million respectively.
Road transport covers 96% national traffic. The investment of CPEC in road transport sector
will help in the improvement of trading well between both countries. Recently, 18.8%
expansion in trade is observed between China and Pakistan due to development in road
transport and it is further expected to rise in future under CPEC project. CPEC plans to give
high priority to road transport network which range from low type to high type to increase the
transport capacity which ultimately results in better traffic control. Pakistan national road
network consist of approximately 260,000km, and higher capacity roads consists of about
68.4% and lower capacity roads spread across 0.33%. But there is not enough progress and
developmental plans for these roads. Therefore, CPEC put greater emphasis on road
infrastructure, building and developing motorway and highways to avoid traffic related issues
and it will save transport time and cost to a considerable range.

Following map shows the special economic zones (SZEs) incorporated with industrial parks
and transport network which consists of roads, highways, railways and airports in major cities
of Pakistan (Islamabad, Lahore, Multan, Quetta, Karachi, Gwadar, Peshawar etc.). Efficient
industrial and economic zones will help in reduction of transportation cost and ultimately
results in better and effective linking to various regions of provinces across country. As a
result, all these developments will provide a basis for logistics sector improvement by
reducing the traffic congestion and saves time that helps in maintaining supply chain which
ultimately result in better transit and trade.

Figure 1 CPEC MAP, SOUCE DAWN

5. CPEC LOGISTICS ARRANGEMENTS:

Logistics is an umbrella term used for managing, movement, storage, production, and
distributing of good from producers to customers. It is not only the transportation of goods. It
unites all the activities from production to distribution. A comprehensive planning and
management is needed to perform all the related activities of logistics sector. The proper
implementation of the CPEC initiatives in this sector is possible only in the form of organized
and well established transport system. CPEC results in growing national and global trade
which will call efficient and effective supply chain and inventory management system, road
infrastructure, remote manufacturing and growing global competition.
a) PAKISTAN LOGISTICS PERFORMANCE INDICATOR (LPI):

To analyze business environment globally, research is conducted by World Economic Forum

on global Competitive Index in 2010-2011.Pakistan was ranked 123 out of 139 countries.
According to World Bank survey (2010), according to Logistics Performance Indicators
(LPI) the evaluation of country performance is based on some factors. Total of 155 countries
were analyzed and LPI of Pakistan stands at 110.

b) EMERGING MARKET LOGISTICS INDEX:

A survey is conducted by Transport Intelligence on globally emerging trading markets other

than China. Audience are asked to rate the possible markets that can prospect and emerge as
prospecting global markets and provide the potential logistics hub. It was analyzed that
Pakistan is considered the least attractive global market due to many factors such as; security
issues, transport issues and logistics sectors, weak inventory management, corruption, weak
economy, etcError! Bookmark not defined.

6. CPEC IMPACT ON LOGISTICS SECTOR:

Pakistan is looking forward to develop the domestic transportation and logistics sector with
major improvements in supply chain and inventory system along with CPEC by 2030. By
establishing industrial parks and SEZs under CPEC, will helps in building roads and railway
networks and overall logistics infrastructure in a better and improved way. Primacy is given
to road networks, because road transport contributes 90% in transportation of trading goods.
Rail networks is also expected to achieve a good portion of investment due to progression in
CPEC. Private sector investment in logistics developments is expected to rise and inventory
management, storage, warehouses will be the central focal point in logistics sector
development (2016-20).

Potential opportunities in logistics hubs in Pakistan is worth almost US$30 billion in 2015.
Importance is given to transportation networks (roads, railways) to provide ease in
connecting various trading partners across the regions. Until today, most of the transportation
of trading goods is done through roads by heavy trucks, which sometimes causes traffic
congestion and slow moving trucks causes additional transportation cost and time. Key
objectives would be set in this regard for reduction of transportation cost and travel time,
better connectivity would be provided to national and international market, rural and urban
trading centersError! Bookmark not defined..

Under CPEC, improve and development in airports, economic hubs, cargo villages,
information system, supply chain management and inventory management will serve as key
initiatives in logistics and transportation sector. CPEC aims to provide potential opportunities
through Karachi and Port Qasim. Trade developments estimated to increase in trade rate,
inside or outside the region.

Construction of Gwadar port will create new opportunities of trading among many Asian
regions and it will provide benefit to China as well. China face many transportations cost in
trading goods and wastage of time is always there. The construction of Gwadar port provides
a single platform or gateway to both countries China and Pakistan to develop strategic
partnership. Consequently,
CPEC will demand warehousing facilities and improved roads and railway structure,
including highways, motorways in Pakis as well. It will improve the connectivity among
regions inside local markets and global markets, due to road alignment, resulting in fast
delivery of trading goods among regional partners. Pakistan will gain the major edge due to
its geographical position among various Asian regions and it will help in uplifting the current
infrastructure of logistics sector and initiates many new.

6.1 KEY IMPERATIVES FOR LOGISTICS SECTOR:

CPEC aims to improve supply chain infrastructure and transport system. Import and export of
products will take less cost and time. More logistic project will start that demand more
storage facilities, efficient transport and warehousing facilities. CPEC progress will basically
depends upon capabilities of logistics sector, supply chain, management and related policies
and procedures to improve growth in order to get access to market nationally and
internationally. To promote trade country’s roads, railways infrastructure need to be better
and improved. CPEC has immense potential and we should focus on potential opportunities
for developing economy and securing future. CPEC will change the dynamic of logistics
sector by improving and developing infrastructure. Key initiatives are given below:

 It will provide connectivity by improving road and railway infrastructure, ports

aviation system.
 It will provide better trade routes through highways and railways.
 It will develop logistics chain and provide improved framework for supply chain
management.
 It will develop special industrial zones.
 It will reduce transit time and cost, and provide better transportation facilities.
 It will improve warehousing and storage facilities. Containers, supply chain and
overall logistic infrastructure.

a) DEVELOPMENT OF TRADE FACILITIES AND LOGISTICS SERVICES:

CPEC can facilitates distribution of product or goods to national and international markets. It
will be possible only through advanced procedures and related transport and logistics sector.
Logistics hubs, integrated industrial units and parks are some key initiatives of CPEC in
logistics sector of Pakistan.

b) DEVELOPMENT OF ROUTES:

Development of certain routes will pave the way for completion of CPEC project in a
systematic or consistent manner. Construction of Gwadar sea port made it compulsory to
construct road network. Through these route alignment of certain regions could make
possible. Construction of route networks such as western routes, eastern routes, construction
of motor ways. These motorways infrastructure development is major contributor in CPEC
success. It will help in reducing inventory cost and improve the performance of logistic
industry.
c) INTEGRATED TRANSPORT SYSTEM:

The basic requirement of CPEC is integrated transport system. Through transport and road
infrastructure, it provides alignment or connectivity of various regions of Asia. Economic and
social development of regions rely on CPEC success. It will provide interconnectivity to
central Asian regions for shared purpose of economic prosperity. Through development of
roads, railways, ports, aviation system, it will become possible to achieve advancement in
logistic sector. It will meet the needs of china and Pakistan from socio economic point of
view.

 It enhances road safety and traffic carrying capacity

 Advancement in railway lines promote exchanges between regions and build
integrated transport system.
 It will promote social and economic progress of regions.
 It will strengthen collaboration among china and Pakistan transport infrastructure
providing sustainable opportunities of growth and development in logistics sector.

7. MAJOR PROBLEMS IN DEVELOPMENT OF LOGISTICS INDUSTRY:

Logistics industry of a country is backbone of country’s economy. Logistics sector includes

transport system, supply chain system, including all activities from production of goods to
providing to end users. It provides a basis for sustainability and improvement in country’s
economy by contributing a good share in economy. It results in effective supply chain
process and makes better availability of trading goods in national and international markets.
There are many problems that Pakistan are facing along with CPEC project that can directly
or indirectly affect the logistics industry and supply chain processes of Pakistan. It can be
from macro level to micro level which includes domestic political constraints, week financing
and economy, political pressure from inside and outside the country, operational and security
risks, travel time and cost etc. Some of them discuss briefly here:

a) DOMESTIC POLITICAL CONSTRAINTS:

One of the major challenge is the week implementation due to domestic political conflicts
that government of Pakistan is subjected to. There are also various institutional constraints
that hampers the implementation of the corridor resulting in slow progress. Week
implementation of the project is the main hurdle in the development of logistics structure of

Pakistan. Reason behind it the Pakistani government subject to domestic political and
institutional issues. There is always some kind of obstruction from Pakistani political parties
in almost every project. Every project face opposition boycott. For every project to be
implemented there is a need of involvement of certain ministries of every party, so it will
become compulsory to direct the mutual interest from government to localities. There will
definitely many interventions in future progression and development of logistics sector under
CPEC. Last one, bureaucracy penetrates in all sectors of Pakistan, which lags behind Pakistan
onto the road of progress.

b) Regulatory Mechanism:

In Pakistan logistics industry is not properly regulated according to specific parameters.

There is no proper frame work for its working. There are not specialized personals. Lack of
regulatory mechanism is a barrier to growth and economic stability of Pakistan.
c) OPERATIONAL AND SECURITY RISK:

CPEC is the vital ingredient for China, Pakistan and the whole region. There are several
internal and external threats to this project. Security is one of the major threat to this corridor.
Any such single event can have great impact and cease the project. Terrorism another
important threat and in the context of CPEC it becomes crucial for Pakistan to control such
rebellious activities that can hampers the progress of corridor. Baluchistan is having foremost
importance in this regard where Gwadar port is under process and can provide the gateway
for economic development of Pakistan by providing a goof share to GDP. The progress or
success of the corridor depends upon on certain inside factors that can directly or indirectly
affect. There are also some security issues to Chinese workers which has negative affect for
proper implementation of the project.

d) WEAK ECONOMY AND FINANCE:

The first and foremost issue is economic growth which always remain slow. Pakistan’s
current growth rate is lower than other neighboring economies. It is the result of poor
financing, energy crisis, and unemployment of youth, week industrial and logistics sector,
transportation. There is a great need to implement strategic methodology towards country’s
progress. Economic deficiency and deprivation is a big challenge for logistics sector of
Pakistan and it affects badly to inflows and outflows.

e) TRANSPORTATION COST AND TRAVEL TIME:

Transportation cost and travel time is another factor that counts a lot for economy
development. Reduced cost and travel time can maximize profit on national and international
level. A well-developed road and railway structure contributes in growing economy to a
certain level. All the national or international trade depends upon the logistics sector of a
country but in Pakistan there is growing need of networks of national highways and
motorways that can reduce the traffic congestion which ultimately results in reduced time and
travelling and operational cost.

8. POTENTIAL IDEAS FOR DEVELOPMENT OF LOGISTICS INDUSTRY

UNDER CPEC:

CPEC has many strategic significances for Pakistan, china, as well as other Asian countries.
Strategic policies needed to implement on long term basis to convert all challenges into
opportunities. Following are some counter measures that help to get potential benefit from
CPEC in logistic sector.

a) CREATING AWARENESS:

There is a need to create awareness about fruitful benefits of CPEC for Pakistan in logistics.
Awareness can be created through media campaign. We should also follow china’s principle
“work more and talk less”. There is a need to build atmosphere of unity among various levels
of supply chain. Integration on all levels of supply chain and logistics can only be achieved in
this way, if there is flow of information in a systematic way and workers will know the
potential benefits. Special courses must be provided to youth at colleges and university level
to train the youth.
b) MANAGING SECURITY CONCERNS:

CPEC is expected to boost the economy of Pakistan by certain initiatives such as regional and
global alignment. Security is the major concern in it. There are many physical threats
nationally and internationally. There is need for special security division to cater the security
issue. Due to terrorist activities this issue is crucial to consider and really need to work on it,
although there is significant reduction in these activities after Zarb-e-Azb operation.

c) ROLE OF DIPLOMATIC DOMAIN:

For such a mega project like CPEC diplomatic domain need to play their role. As CPEC
proposed to align the various central Asian regions, it will not prove beneficial only for china
and Pakistan but other Asian countries as well. It is on the part of all these countries to crate
favorable condition or environment for CPEC successful implementation, and one must adopt
institutionalized approach to address all the possible challenges in this regard. Pakistan must
develop strong regional alliance with other regional states, like US and India and assure
benefits from this project. It can only be possible if Pakistan will try to remove political and
economic barriers in central Asia.

d) REMOVING INTERNAL CONFLICTS:

There are many internal domestic constraints related to CPEC, such as interest of political
parties. Completion of such a mega project directly affected by domestic political and
economic situation. These conflicts can directly or indirectly hinders the progress of logistics
sector. There is a need of resolving these political issue to bring social and political harmony
for the project. It is the responsibility of the states to tackle this critical issue in short or long
run, especially in the province of Baluchistan.

e) BUILDING HUMAN RESOURCE CAPACITY:

To bring improvement in logistics and supply chain management, a dedicated work force is
needed. It is obligated upon Pakistan to provide such a human resource. Unfortunately,
Pakistan is unable to develop such capacity. Although there are unemployed population in
Pakistan and china bring their own skilled labor to work on project in Pakistan. There are no
technical and administrative abilities among youth of Pakistan that is the need of this mega
project. Pakistan really need to address this issue to improve the logistics system. Now a day
in Pakistan universities and colleges special courses, such as supply chain management, cold
logistics etc., are designed to train the youth in this respect.

9. THE DISCUSSION SECTION:

China Pakistan economic corridor (CPEC) has potential benefits for Pakistan. After careful
analysis of CPEC benefits that can provide to logistics sector, it can be said that improvement
in logistics sector can give prospective benefits to economy of Pakistan. Despite its potential
benefits, logistic sector still faces many challenges. To tackle this issue following suggestions
are recommended:

Training and Management: Human resource is the basic prerequisite to any organization to be
successful. In Pakistan logistics sector there is lack of technical and qualified logistics
personnel. It is a matter of grave importance. Special training courses must be provided to
logistics personal to improve the overall logistic performance. Universities and colleges must
provide such professional courses to develop such capabilities in the youth. Similarly,
management system need to be correct, timely operational planning and supply chain
effectiveness can only be achieved if the planning and management wing works properly.

Monitoring System: To full fill the demand of future logistics every logistics sector must
have proper monitoring and evaluation system to analyze the potential risk in this sector, such
as varying trends of the market, demand and supply management, fluctuations and dynamics
of the consumer market, and supply chain management. We can better analyze the potential
risk related to logistics project and can take effective steps to control it.

Communication System in Logistics: Overall research and developmental procedure need to

be implement in this sector to ensure the efficiency and effectiveness of the sector.
Communication at every level from corporate to operational and functional level make it
possible to align all the strategic or fiscal plans with the operational plan. There must be
interdependency between information, communication and logistics sector to cover the gaps
resulted in poor profit.

Information Infrastructure: A comprehensive information system in logistics sector is

important to reflect the needs of the system. Flow of information content at any level is
crucial to understand to reflect the demands of market and customer and to identify gaps in
performances. Information sharing in the supply chain process is considered the significant
factor for improved performance. Information sharing should be market based, customer
based, methods, plans and procedure to reduce risk, enhance productivity and for mutual
trust.

10. THE CONCLUSION SECTION:

China Pakistan economic corridor (CPEC) has bedrock role in the socio economic
development of Pakistan. The logistics sector of any country contribute major role to uplift
the economy. National and international trade can be improved through effective transport
and logistic infrastructure, the study suggests that effective management in logistics and
transport infrastructure can save time, money to support trade regionally and globally.
Existing transport and logistic sector need to implement policy measures, effective and
centralized monitoring for further development in the sector. Managing dynamic capabilities,
varying trends of market, cold chain logistics, information handling, monitoring and
management, special economic zones, warehousing facilities are key requirements in
effective logistics sector.

Development of national and international industry depends upon logistics and supply chain
system of a country, which resulted in economy development. Pakistan need to ensure
effective control and management in development of logistics sector. From future
perspective, sustainable technology development and policy measure is crucial to adopt.
Government needed to adopt coordinated approach among various sector of logistics and
transport to integrate all the developmental project that can transfer the country into a
prosperous state.

Summing up the discussion we can say that CPEC can prove “game changer” and give e
boost to logistics sector of Pakistan but it is not possible without reconstruction of
transportation and logistics sector, but it demands innovation, technical personnel, and
information system to reap the maximum benefit from CPEC.
SUMMARY:

CPEC provide golden opportunity for logistic sector to improve its infrastructure in terms of
production, inventory, storage or warehousing and effective trade facilities. Now it is up to
the logistics and transport infrastructure to cut benefits from the opportunity by taking
specific initiatives in this regard. It will uplift economy of the country and provide
opportunities to expand local market at global level. The result of this study will help the
logistics sector to ponder upon certain key heads for bringing improvements in the logistics
sector. It is not wrong to say that it is time for Pakistan to modernize its logistics and
transport sector with modern techniques and tools, with growing needs at global level.

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