Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said on Monday that situation in Middle East and closure of the Strait of Hormuz have triggered alarm across Pakistan’s trade and industry landscape – with business leaders apprehending that soaring freight costs and delayed shipments could derail country’s economy.
LAHORE, Mar 16 (APP):Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said on Monday that situation in Middle East and closure of the Strait of Hormuz have triggered alarm across Pakistan’s trade and industry landscape – with business leaders apprehending that soaring freight costs and delayed shipments could derail country’s economy.
FPCCI President Atif Ikram Sheikh told media that following the outbreak of the Iran conflict in late February 2026, global shipping markets have been thrown into turmoil. With commercial vessel traffic through the strategic waterway grinding to a halt and shipping lines have imposed crippling war-risk surcharges – raising fears of a balance of payments crisis for Pakistan.
FPCCI has called for immediate government intervention to protect the nation’s trade and industrial sectors.
The FPCCI Chief explained that the geopolitical instability in the Gulf poses a threat to the country’s export competitiveness – with approximately 80 percent of Pakistan’s crude oil imports and a quarter of liquefied natural gas (LNG) transiting through the Strait of Hormuz – and, any prolonged disruption will inevitably bleed into our foreign exchange reserves and trigger severe inflationary pressures.
Atif Ikram Sheikh mentioned that the financial toll on logistics has been immediate and staggering. Container freight rates on major routes have skyrocketed. Furthermore, shipping lines have introduced emergency war-risk surcharges ranging from USD 1,500 to USD 3,500 per standard container (TEU).
The FPCCI President has cautioned that these logistical bottlenecks could spell disaster for the nation’s premier export sectors as transit times to our key markets in the European Union and the United States are expected to increase by 15 to 20 days due to vessels rerouting. “If these supply chain disruptions persist, the value-added textile sector alone could witness a 10 to 20 per cent drop in exports this month and we cannot afford to have our trade deficit widen,” he added.
He elaborated that the crisis is already reverberating through the domestic economy as transshipment rollovers and severe delays have been reported at Karachi’s port terminals because global shipping giants have suspended bookings from Pakistan for Gulf-bound cargo.
FPCCI Senior Vice President (SVP) Saquib Fayyaz Magoon said that compounding the crisis for local manufacturers is the recent spike in domestic diesel prices – which has pushed inland transportation costs up by an estimated 15 to 25 per cent. Industry representatives argue that standard 30-day fixed inland freight contracts are no longer viable; leaving exporters highly-vulnerable to weekly fuel price shocks.
The FPCCI leadership has urged the government to formulate an emergency contingency plan, including the exploration of B2B barter trade mechanisms with regional partners and securing alternative fuel supply chains – to insulate the domestic market from the worst of the global economic fallout.
