Business leaders say shipping surcharges, longer transit times and higher diesel prices threaten trade competitiveness and could strain forex reserves
Pakistan’s business community has warned that escalating tensions in the Middle East and the disruption of shipping through the Strait of Hormuz could severely impact the country’s exports, energy imports and foreign exchange stability.
In a statement issued on Monday, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh said the crisis had already unsettled global shipping markets after the outbreak of the Iran conflict in late February 2026.
According to the FPCCI, commercial vessel traffic through the strategic waterway has largely halted, forcing shipping companies to reroute cargo and impose emergency war risk surcharges.
Sheikh said shipping lines were introducing additional charges ranging from $1,500 to $3,500 per standard container unit, while container freight rates on key routes had surged sharply.
The disruptions are also expected to extend delivery times to Pakistan’s major export markets in the European Union and the United States by 15 to 20 days, he added.
The FPCCI president warned that prolonged supply chain disruptions could significantly damage Pakistan’s export performance. He said the value added textile sector alone could face a decline of 10 to 20 percent in exports this month if the situation persists.
He added that the widening trade deficit would pose serious challenges for the country under its ongoing International Monetary Fund programme.
Sheikh said the geopolitical crisis also threatened Pakistan’s energy security. Nearly 80 percent of the country’s crude oil imports and about one quarter of its liquefied natural gas shipments pass through the Strait of Hormuz, meaning any prolonged disruption could place heavy pressure on foreign exchange reserves and trigger inflationary pressures.
He noted that the crisis was already affecting domestic logistics operations, with shipment delays and transshipment rollovers reported at Karachi’s port terminals.
According to the FPCCI, several global shipping companies have also suspended bookings from Pakistan for cargo bound for Gulf markets, further disrupting trade flows.
Separately, FPCCI Senior Vice President Saquib Fayyaz Magoon said rising fuel costs were adding to the pressure on exporters and manufacturers.
He said a recent increase of Rs55 per litre in domestic diesel prices had pushed inland transportation costs higher by an estimated 15 to 25 percent, making conventional 30 day fixed freight contracts increasingly difficult to maintain.
Industry representatives have warned that exporters are becoming more exposed to frequent fuel price fluctuations and rising logistics costs.
The FPCCI called on the government to prepare an emergency contingency plan, including exploring business to business barter trade arrangements with regional partners and securing alternative fuel supply chains to shield the economy from the worst effects of the crisis.
