Pakistan Post has become the most profitable public department of the year, increasing its revenue by 116 percent for the fiscal year 2017-18.
Deputy Chief Account Officer Revenue, Awais Ahmed, made the announcement, saying that the department has taken many new steps to cope with the challenges they’re facing and earned profits amounting Rs. 14.5 billion this year, earning the highest profit among other government departments.
He disclosed that Rs. 6 billion, an amount disputed with different departments, is yet to be recovered. If the issue turns out in favor of the Post Office, a huge amount will be added to the department’s revenue.
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The officer said that the performance of Pakistan Post has been remarkable despite a 10 percent cut in the department’s budget. He said that being a public service entity, Pakistan Post has to establish outlets in rural areas and at places where only two to three parcels are received.
The government should operate the department on a commercial basis and turn its 13,000 postal counters into franchises to reduce the expenditure of Rs. 22.2 billion and increase the revenue, adding that the number of General Post Offices should be 84.
As the department is labor-intensive, the government has to induct employees on a regular basis. The department pays the pensioners from its own funds because of which the expenditure is high. Therefore, the department can only raise profits if its financial resources are increased and it is provided with new delivery vehicles, said Awais Ahmed.
Via Pak Observer
A role model for other government departments to follow and for Pakistan to get out of the current financial crisis
Wait, they made Rs.14.5 billion profit (without adding any of the Rs. 6 billion yet to be recovered) despite having Rs. 22.5 billion in expenses? Something doesn’t add up. How much was the total revenue for this period?
Until last year it was in loss. There is something fishy in the statement / Accounts of Post Office
Profits are counted after deducting expenses.
bhai, kya expenses 22.5 billion honay ka baad 14.5 billion profit nai ho sakta kya?
They have not told you the revenue figure. You have expenses and profit. Profit = Revenue – Expenses
Simple math. Let’s compare these figures with some of the world’s most profitable companies:
Google revenue for Q4 2018: $39.3 billion
Google profit for Q4 2018: $8.9 billion (~22% of revenue)
Amazon revenue for 2018: $233 billion
Amazon profit for 2018: $11.2 billion (4.8% of revenue)
Pakistan Post revenue for 2018: Rs. 42.7 billion
Pakistan Post revenue for 2018: Rs. 20.5 billion (48% of revenue)
As Anis pointed out above, Pakistan Post was in loss last year. How did they suddenly become more profitable than Google? If you have to make up a figure, at least make it believable.
Google is in billion dollars and pak post is in rupees why you people with small brains wants to become Einstein?
It is far easy for any business/public department in Pakistan to have high profit margins (compared to margins in developed world where competition is fierce – Google had relatively higher profit margins compared to Amazon because they have relatively lower competition compared to Amazon) … Pakistan Post and many other Pakistani businesses dont have competition thats why you are not able to digest profit margins .. plus previous governments had corrupt elements this government is tightening the screws. All in all very good sign and completely doable … At the end I must say you’ve wasted 10 minutes of your time and 5 minutes of my time on a clueless post ..
Profits are counted after deducting expenses.
thats good amazing one pakistan post office indeed the best company its amazing one very fast services they have thanks for sharing
Thanks God they have started to wake up.