Background
Logistics Performance Index (LPI) is a benchmarking tool developed by the World Bank to evaluate countries’ logistics and trade facilitation performances. LPI provides governments, businesses, and investors with a valuable resource for identifying challenges and opportunities in logistics and supply chain management. It is noteworthy that Pakistan has been omitted from the LPI’s latest edition in 2023, which ranks 139 countries.
This blog explores the reasons for this exclusion and provides a comprehensive analysis of the impact it has on Pakistan’s reputation as well as its investment potential.
Pakistan’s Absence from the LPI Index
It is based on the results of a survey of logistics providers that assesses countries in six main areas:
1-Â Â Â Â Â Customs,
2-Â Â Â Â Â Infrastructure,
3-     International shipments,
4-     Logistics quality and Competence
5-Â Â Â Tracking & tracing, and
6-Â Â Â Â Timeliness.
Despite the efforts of the World Bank team to cover as many countries as possible, some countries, including Pakistan, are excluded due to inadequate assessments by logistics providers.
A More Complete Picture: The 2023 LPI Report’s New Dataset
As part of the 2023 LPI report, the World Bank representatives informed us that a new dataset includes data for Pakistan. This dataset offers data on dwell time (consolidated and port dwell time) for imports and exports, which can be found at LPI.worldbank.org under “Supply chain tracking data.” This new data provides a more comprehensive view of Pakistan’s logistics performance since it includes actual supply chain tracking data as opposed to just perception-based data.
Impact on Pakistan’s Reputation:
1-Initial Perception Challenges
Pakistan’s absence from the LPI index may raise concerns among potential investors and trading partners who rely on this ranking for insights into a country’s logistics performance. As a result of this exclusion, Pakistan’s logistics capabilities may be perceived negatively.
2-Â AÂ Mitigating Factor: The New Dataset
Although, the inclusion of Pakistan in the new “Supply chain tracking data” dataset can be viewed as a mitigated factor since it provides a more detailed and accurate representation of the country’s logistics capabilities. As a result of this data, stakeholders will be able to assess Pakistan’s performance based on actual data rather than solely on perception.
3-Leveraging Data for Reputation Enhancement
Pakistan can counteract any negative perceptions resulting from its exclusion from the LPI index by embracing the new dataset and showcasing its logistics performance based on the data. It is possible for Pakistan to enhance its global reputation and increase its attractiveness to investors by demonstrating improvements in its logistics capabilities.
4-AÂ Call for Greater Engagement
As a result of Pakistan’s absence from the Logistics Performance Index, the country is reminded that it needs to improve its engagement with international logistics providers and increase its visibility in global logistics networks. Pakistan can improve its chances of inclusion in future editions of the LPI by addressing the gaps in its logistics performance and actively participating in the survey process.
5-Hiring Professional Logistics Experts
A professional logistics expert should be hired by the government to analyze the supply chain tracking data and devise strategies to improve Pakistan’s logistics performance. Professionals with these skills can identify weak areas in the country’s logistics sector and provide actionable recommendations for improvement
6-Investor Perception and Decision-making
Initially, Pakistan’s absence from the LPI index may deter potential investors and trading partners who rely on such rankings for insight into a country’s logistics performance. However, the inclusion of Pakistan in the “Supply chain tracking data” dataset serves as a mitigating factor, offering stakeholders a data-driven perspective on the country’s logistics capabilities.
7-Collaborate with the World Bank and Other Global Stakeholders
Pakistan should actively collaborate with global stakeholders like the World Bank to receive guidance and support in enhancing its logistics performance. By maintaining close coordination with these organizations, Pakistan can access resources, expertise, and opportunities that can help accelerate its progress in the logistics sector.
8-Leverage the New Dataset for Reputation Enhancement
Pakistan can counteract any negative perceptions resulting from its exclusion from the LPI index by embracing the new dataset and showcasing its logistics performance based on the data. It is possible for Pakistan to enhance its global reputation and increase its attractiveness to investors by demonstrating improvements in its logistics capabilities.
Final Thoughts
While Pakistan’s absence from the LPI index might initially raise concerns, the inclusion of the country in the new “Supply chain tracking data” dataset offers a more accurate representation of its logistics performance. As a result of leveraging this data, hiring professional experts, and collaborating closely with global stakeholders such as the World Bank, Pakistan can enhance its logistics performance, reputation, and investment potential. It is possible that this exclusion will serve as a catalyst for Pakistan to improve its logistics sector and stimulate economic growth.
