By Muhammad Faisal Kaleem

 Pakistan Post Office Department (PPOD) has discontinued services being provided to different institutes and organisations due to digitalization in the recipient entities, according to documents obtained by Wealth Pakistan.

As per the documents, PPOD has withdrawn services for Savings Bank Accounts and Savings Certificates due to the conditions set by Financial Action Task Force (FATF). “The services were withdrawn in 2020 due to FATF conditionality related to the lack of digitization and adequate supervisory and regulatory mechanisms for Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT),” the document said. Consequently, all Savings Bank Accounts and Savings Certificates were transferred from PPOD to the Central Directorate of National Savings (CDNS).

The Pakistan Post also suspended military pension payment service due to digitalization of the banking system as well as in compliance with the Supreme Court’s decision. Subsequently, such pensions are directly credited to the pensioners’ bank accounts. Moreover, the collection of electricity bills by Islamabad Electric Supply Company (IESCO) has also been stopped by PPOD as the power utility switched from manual bill collection to digital collection through the digital payment ecosystem 1-Link from July 2025, according to the documents.

The PPOD has also discontinued provincial tax jobs, including renewal of manual arms licenses of Punjab, payment of driving license fees and collection of motor vehicle token tax. The driving license fee payment method has now been shifted to an electronic payment system. Additionally, the province’s home department has not demanded driving license stamps for 2025. Collection of motor vehicle token tax has been discontinued on the directives of secretary Excise, Taxation and Narcotics Control Department, Lahore.

Sources in the Ministry of Communications said that suspension of these services reflects a broader shift towards modernization, digitization and efficiency in public service delivery. “The transition to digital and banking-based systems is expected to reduce manual handling, minimize human error, and curb financial irregularities,” they said, recalling that such initiatives also strengthen compliance with international financial standards, including FATF requirements.

According to them, direct transfer of pensions and savings into bank accounts will enhance financial inclusion, ensure timely payments and provide greater security for beneficiaries. Similarly, the move towards digital bill collection platforms is likely to improve revenue collection mechanisms, reduce long queues at post offices and offer greater convenience to consumers through multiple payment options.
“Pakistan Post is not being sidelined but is gradually being repositioned to focus on its core postal, courier and logistics services while exploring new revenue streams aligned with e-commerce and digital logistics,” they claimed.

A senior official dealing with Information Technology matters at the ministry told Wealth Pakistan on condition of anonymity that the department was also working on internal reforms to thoroughly upgrade its IT infrastructure and service delivery model in line with modern requirements.

Credit: INP-WealthPk