$36 billion in logistics loss sparks calls for digital overhaul

Pakistan loses an estimated $36 billion a year to outdated, largely offline logistics systems – losses that experts say can only be reversed through rapid digitization and stronger public-private partnerships.

It was unveiled during the Carec Business Forum in Bishkek, where global development partners, including the Asian Development Bank (ADB), renewed their commitments to cross-border digital connectivity.

Foreign trade losses due to Pakistan’s lack of digitization were discussed during the international event where ADB announced plans to invest more than $10 billion by 2030 to support projects under the Central Asia Regional Economic Cooperation (Carec) framework, aimed at creating a digitally connected and resilient region.

The urgent need for trade transparency and traceability has increased after the International Monetary Fund (IMF) recently identified an $11 billion discrepancy in Pakistan’s trade data, urging Islamabad to modernize reporting and restore global trust.

Addressing the Carec Business Forum, galaxefi founder and CEO Asif Pervez said Pakistan is at a pivotal moment where technology-driven reforms can unlock significant trade gains and position the country as a digital trade hub for the entire Carec corridor.

“Pakistan cannot afford to lose $36 billion a year when technology offers an immediate solution to overcome these systemic barriers,” he said. “The government must act decisively to build a reliable digital ecosystem for regional trade.”

His observations are in line with the findings of the Carec Institute, which has repeatedly warned that the region’s main trade barrier is not physical infrastructure but the absence of an integrated multimodal e-logistics system. While the Pakistan Single Window (PSW) has digitized government processes, nearly 70% of private logistics operations remain manual, keeping Pakistan uncompetitive in global supply chains.

ADB President Masato Kanda told delegates that countries that “connect faster and trade smarter” will lead the next wave of economic growth.

He announced that ADB will quadruple private sector financing to $13 billion annually by 2030, dedicating 30% of future operations to regional connectivity and digital corridors. “This connectivity is designed to make trade smoother, greener and more inclusive,” he said.

Pakistan signed two major memoranda of understanding (MoUs) at the forum – the Carec Innovation and Venture Investment Catalyst Facility and the Carec Digital Corridor Initiative – both aimed at deepening digital cooperation.

“Pakistan must seize this moment,” Pervez stressed. “The technology, infrastructure and partnerships are already there. What we need now is decisive alignment from the public sector. This is how we eliminate $36 billion in losses and transform into a competitive regional power.”