Pakistan’s courier, express & parcel (CEP) market has been growing fast, powered by expanding e-commerce, rising online retail demand, and increasing expectations for quick delivery. But this growth comes with big hurdles. Below is a breakdown of the current state, what is causing friction, and where there are gaps and opportunities.
Current Landscape
- Major players like TCS, Leopard Courier, Call Courier, M&P, BlueEx, Pakistan Post, Trax, and others dominate.
- Many courier platforms now also offer real-time parcel tracking, COD (cash on delivery), return-to-sender (RTS) options, and express / overnight delivery service in many urban areas.
- Logistics service providers are trying to expand into rural and semi-rural areas where infrastructure, address systems, and reliable transport are weaker.
Key Challenges
- Infrastructure & Last-Mile Delivery
Poor or inconsistent road networks, especially in remote areas, make delivery slower, more expensive, and risk damage or loss. Addressing inefficiencies in last-mile delivery is still a major problem. - Cash on Delivery (COD) Model Issues
COD is deeply embedded in Pakistani e-commerce. Issues include high return rates, delayed payments to sellers, risk of failed deliveries (when recipients are unavailable or refuse), and inefficiencies in reconciling COD amounts. - Regulatory & Taxation Pressure
New government requirements — such as seller registration, National Tax Number (NTN) requirement, and taxes on COD and digital payments — are squeezing smaller sellers and courier partners. - Operational Costs
Fuel, maintenance, labor, warehousing. These costs are rising, which makes scaling difficult while keeping delivery charges reasonable. - Technology Gaps
Many courier firms lag in system automation, route optimization, advanced tracking, proof of delivery, and customer communications. That leads to delays, lost parcels, and lower trust. - Customer Experience Problems
Issues like fake delivery attempts (marking “customer unavailable” without making attempts), inconsistent tracking info, poor customer support, and lack of transparency hurt reputation.
