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National Logistics Corporation

Pakistani state-owned logistics company From Wikipedia, the free encyclopedia

National Logistics Corporation
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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]

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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]

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History

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The National Logistics Corporation 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]

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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 domestic crude oil, amounting to about 76,000 barrels per day.[3]

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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

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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