Karachi, March 16, 2026 – The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has warned that escalating war risk in the Middle East and skyrocketing freight charges are jeopardizing Pakistan’s trade and industrial sectors.
Atif Ikram Sheikh, President of FPCCI, stated that rising military tensions and the partial closure of the Strait of Hormuz have thrown global shipping into turmoil, pushing freight costs to unprecedented levels and delaying shipments. “The current crisis threatens our export competitiveness and could destabilize Pakistan’s economy if left unaddressed,” he said.
Following the outbreak of conflict in Iran in late February 2026, commercial vessel traffic through the strategic waterway has slowed dramatically, and shipping lines have imposed war-risk surcharges ranging from $1,500 to $3,500 per container (TEU). With nearly 80% of Pakistan’s crude oil imports and 25% of LNG supplies transiting the Strait, any prolonged disruption could impact foreign exchange reserves and fuel inflation.
FPCCI analysts highlighted the immediate impact on exports. Transit times to key markets in the European Union and the United States are expected to rise by 15–20 days, which could result in a 10–20% drop in textile exports this month alone. Domestic ports, especially Karachi, are already facing cargo rollovers and booking suspensions, causing additional strain on local manufacturers.
Adding to the crisis, diesel prices surged by Rs55 per liter, pushing inland transportation costs up by 15–25%. Fixed freight contracts are now unsustainable, leaving exporters highly vulnerable to fuel price shocks.
FPCCI leaders have urged the government to implement an emergency contingency plan, explore B2B barter trade mechanisms, and secure alternative fuel supply chains to mitigate the economic fallout from global geopolitical instability.
Key Trade Risks Highlighted by FPCCI
| Factor | Impact on Pakistan Trade |
| Middle East Military Tensions | Disrupted shipping & exports |
| Closure of Strait of Hormuz | Delayed crude oil & LNG imports |
| War-Risk Surcharges | $1,500–$3,500 per container |
| Increased Transit Times | 15–20 days delays to EU & US |
| Diesel Price Hike | Inland transport costs +15–25% |
| Textile Exports | Potential drop 10–20% this month |
The FPCCI has stressed urgent government action to prevent a widening trade deficit and protect the country’s industrial sectors from prolonged supply chain disruptions.