‘There is a need to infuse an element of trust, accessibility and security when it comes to money transfer in Pakistan.’


Written by Huma Iqbal • Special Features • November 2010

Qamar Zaidi is a pioneer of courier services in Pakistan. In an exclusive interview with SouthAsia, he answers critical questions about the hardships and challenges that the courier industry faces in Pakistan today.

What are the prospects for private courier companies in Pakistan to offer remittance services for the clients across the country?
When it comes to offering remittance services through courier services, the factor that hinders the operational management the most all over the world and especially in Pakistan is the Security Risk. Though pay orders and checks are being delivered through courier services for long now, cash money is highly undesirable as it involves a high risk. Nobody can guarantee its safe transfer from one door to another. Even if the transfer of cash becomes possible through courier services, basic infrastructure to monitor and track the money movement will be needed, which given the current global financial crisis, is not a feasible idea to invest in for the courier industry.
Moreover, the legal aspect of the economy also intervenes when it comes to money dispatching services in Pakistan. The government of Pakistan like all other governments all over the world encourages documented economy, where every transaction of money is monitored. It helps in keeping a database of the overall progress that a particular economy is making. Transfer of cash amount through courier services, that too without any basic infrastructure to monitor and keep a track puts at risk the documentation of the amount of money dispatched and received. The consequences can become more serious for remittance money which is considered to be the backbone of any economy and helps a country determine the economic activities in a given time period.

How can the courier industry intervene to provide this service in far and wide of the country?
Back in 1986, a pioneer courier service in Pakistan did take an initiative in collaboration with banks to make money transactions possible in the shortest possible time. The company connected 13, 000-14, 000 banks overnight and undertook physical movement to deliver customer checks to and from these banks, making sure that the money was transferred to the accounts within 72 hours of dispatching. With the advent of online banking however, the procedure came to a halt. It won’t be wrong to say that the online media today has changed the way we do business.
Online banking is the new name of the game and given the successful operations and tactful marketing that our corporate sector practices in the country, it would be an added advantage for the customers if the courier services implement a model where money transactions can take place through electronic instructions. This can be done by partnering with banks and money exchange services in the country rather than relying on physical movement of money.

What role has the Pakistan Post played in money transfer in all these years?
Pakistan Post has been providing money transfer services across Pakistan for past several years. It administers the system through physical movement of money wherein the deposited cash from the host centre is delivered to the recipient post office, either to be received in person by the concerned or further handed down to the post man who delivers on the doorstep. A considerable percentage of people rely on the PPO’s money transfer system, especially those who send the amount back home in the rural areas.
However, when it comes to comparing the Postal service and the courier services in Pakistan, there is no question of a fair competition. Though postal service takes advantage of its public body, and boosts to have revamped its services, it cannot compete with the reliability, speed and monitoring systems of the courier services.