FLASHNEWS:

Transport Strike in Pakistan Threatens Economic Stability, Urges Immediate Resolution

KARACHI: A nationwide strike by goods transporters is increasingly becoming a significant economic concern for Pakistan, affecting importers, exporters, industries, traders, and consumers. Mian Zahid Hussain, President of the Pakistan Businessmen and Intellectuals Forum, has emphasized the urgency of resolving the issues through dialogue rather than prolonged strikes.

According to Pakistan Businessmen and Intellectuals Forum, the strike, which began on August 8, has halted the movement of over 400,000 goods-carrying vehicles. Transporters have voiced grievances over withholding tax, toll taxes, axle-load regulations, customs issues, and fluctuations in diesel prices. Hussain urged the government and transporters to engage in immediate negotiations, warning that each day of the strike exacerbates economic losses. Importers are facing significant disruptions as the clearance and transportation of containers at Karachi Port and Port Qasim have stalled, leading to accumulating charges despite the importers' lack of control over the situation.

Hussain highlighted that in July 2026, Pakistan imported goods worth approximately $6.89 billion, with annual merchandise imports totaling $69.597 billion in FY2025-26. The ongoing disruption in transportation from ports is inflating business costs, which are likely to be transferred to consumers. He called on authorities to waive demurrage, detention, and related charges imposed due to the strike.

The export sector is also experiencing pressure, with export containers worth around $500 million stranded at factories, according to the Pakistan Textile Exporters Association. Delays are causing shipment issues, additional costs, and risks of international buyers turning to other countries for their needs. Hussain pointed out that the textile sector, contributing approximately $18 billion in annual exports, is already struggling with high operational costs and is now facing added challenges due to the strike.

Hussain expressed concern over the potential nationwide closure of petrol pumps starting August 15, which could exacerbate disruptions in business activities and supply chains. He called for the establishment of a negotiating committee comprising relevant ministries, FBR, NHA, port authorities, FPCCI, and transporters to resolve the issues swiftly.

Hussain stressed that Pakistan cannot afford logistical and supply chain paralysis while striving to boost exports and revitalize the economy. He appealed to transporters and petroleum dealers to forgo strikes and address their issues through negotiations to prevent further harm to the national economy.