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National Logistics Corporation

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National Logistics Corporation
Company typePublic
IndustryLogistics
Freight System
FoundedJuly 20, 1978; 46 years ago (1978-07-20)
Headquarters
Rawalpindi, Punjab
,
Pakistan
Area served
Pakistan
Afghanistan (formerly)
ServicesLogistics, freight forwarding, dry ports, border terminals, engineering, construction, tolling, express freight trains, polymers, and sea freight
Number of employees
8,000
Websitewww.nlc.com.pk

The National Logistics Corporation (Urdu: نیشنل لاجسٹکس کارپوریشن), formerly known as the National Logistics Cell, is a Pakistani state-owned logistics company based in Rawalpindi, Pakistan.[1][2] It is considered as the logistics arm of Pakistan Army and operates under its indirect control.[3][4][5]

As of 2011, NLC was responsible for transporting approximately 50 percent of Pakistan's domestic crude oil, amounting to about 76,000 barrels per day.[3]

History

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The National Logistics Cell was founded following the 1977–1978 wheat crisis in Pakistan, due to insufficient railway capabilities to transport wheat from the Karachi seaport inland.[6] Initially, the Pakistan Army was asked to address the crisis, which ultimately led to the formation of the NLC as an independent entity.[6] Later, it was given the role of supplying military equipment to Mujahideen fighting the Soviet Union during the presidency of Muhammad Zia-ul-Haq.[7] During this period, NLC also acquired the freight business of Pakistan Railways.[8][9] In the early stages of the Afghan refugee crisis, the NLC used the Pakistan Army's transport capabilities to provide logistical support to approximately three million Afghan refugees between 1982 and 1989.[6]

In the fiscal year 1994-1995, the NLC was allocated approximately Rs 245 million by the Government of Pakistan to invest in stock markets and bonds, aimed at funding vehicle replacements and other infrastructural developments.[6] The government was the sole financer of the NLC's infrastructure development during this period.[6]

By 2004, the NLC had evolved into a major logistics organization, boasting a carriage capacity of 50,000 tons of dry cargo and 9 million liters of fluid cargo, with a fleet of 2,000 vehicles.[6] Its assets were valued at around Rs 5 billion.[6] Since its establishment, NLC had also diversified into the construction industry, undertaking various military and civilian infrastructure projects in Pakistan, including roads and bridges.[3]

In July 2011, the Government of Pakistan allowed the NLC to participate in the bidding process for the acquisition of a state-owned construction company, which was a change from its original charter.[3] The decision was made to refocus the NLC and align its activities with its statutory framework.[3] The NLC sought to acquire international assets owned by the National Power Construction Company.[3]

As of 2011, NLC was responsible for transporting approximately 50 percent of Pakistan's imported crude oil, amounting to about 76,000 barrels per day.[3]

In 2014, NLC was awarded the contract to construct the Rawalpindi section of Rawalpindi-Islamabad Metrobus at 1.04 per cent higher than the estimated cost.[10]

Controversies

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In 2010, a corruption scandal was unearthed that involved two Pakistan Army generals, (Maj Gen Khalid Zaheer Akhtar and Lt Gen Muhammad Afzal), and caused a loss of Rs. 1.8 billion to the company through speculative investments between 2004 and 2008.[11][12] In 2015, both of them were convicted by the military court of Pakistan.[13]

References

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  1. ^ "Senate of Pakistan". www.senate.gov.pk. Retrieved 2023-05-29.
  2. ^ Hussain, Ali (5 August 2023). "Senate passes National Logistics Corporation Bill, 2023". Business Recorder. Retrieved 15 September 2023.
  3. ^ a b c d e f g Rana, Shahbaz (July 22, 2011). "Army's expanding footprint: NLC allowed to bid for state-owned construction firm". The Express Tribune.
  4. ^ Newspaper, From the (July 2, 2012). "NLC scandal". DAWN.COM.
  5. ^ "Rs35 billion budget approved for National Logistics Cell". The Express Tribune. August 13, 2012.
  6. ^ a b c d e f g Brömmelhörster, Jörn; Paes, Wolf-Christian (2004). The Military as an Economic Actor: Soldiers in Business. Palgrave Macmillan. p. 136. ISBN 9780333999288. For instance, the National Logistics Cell was established in the wake of the wheat shortage in 1977–8. The lack of adequate railway facilities to bring wheat from the Karachi seaport into the country brought the Army into the picture. Initially, the Army was called upon to help solve the wheat crisis, which finally led it to establish an independent organization, the NLC. The Army's transportation capacity was also solicited during the early days of the Afghanistan crisis. The NLC provided logistical support to 3 million Afghan refugees from 1982–9. In 1994–5, the NLC received about Rs 245 million from the government to invest in stocks and bonds. This was primarily to provide capital investment for the replacement of vehicles and other infrastructure. The government was the sole investor in developing the NLC's infrastructure. What started as a rescue operation was transformed into an organization that by 2004, had a carriage capacity of 50,000 tons of dry cargo and 9 million liters of fluid cargo and a fleet of 2,000 vehicles and its assets were estimated at about Rs 5 billion. The organization also undertaking other activities, including the construction of roads and bridges, spraying of pesticides, locust control and logistical crisis management.
  7. ^ "Pakistanis Question Perks of Power". Washington Post.
  8. ^ "Railways and the NLC". The Express Tribune. October 16, 2014.
  9. ^ Walsh, Declan (May 19, 2013). "After Decades of Neglect, Pakistan Rusts in Its Tracks" – via NYTimes.com.
  10. ^ Yasin, Aamir (March 22, 2014). "PM to inaugurate Metro Bus Project tomorrow". DAWN.COM.
  11. ^ Newspaper, the (July 2, 2012). "NLC scandal". DAWN.COM. Archived from the original on October 29, 2012.
  12. ^ "Rs4.3b NLC scam: Military probe finds two ex-generals guilty". The Express Tribune. August 5, 2015.
  13. ^ "Army sentences two former generals in NLC corruption case". DAWN.COM. August 5, 2015.
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