Textile exports bear the brunt of transport disruptions

ISLAMABAD: Textile exporters have expressed grave concern over the ongoing transportation disruptions that have severely hindered the movement of nearly 30,000 containers, causing significant delays in shipments to international markets.

The blockade of the National Highway at the Sindh-Punjab border for the past 10 days due to protests over the canals issue has suspended all vehicular movement between the two provinces, severely impacting the transportation of essential goods such as petrol and food items, with trucks and trailers stranded.

Industry representatives have warned the government that the backlog from the ongoing strike by goods transporters and protests across Sindh against the proposed construction of canals on the Indus river is expected to take up to 25 days to clear, potentially causing millions of dollars in losses due to delayed shipments and the accumulation of imported containers.

Muhammad Shafqaat, CEO of the Pakistan Textile Council (PTC), explained that the four-day strike by goods transporters in Karachi had led to significant delays, with approximately 20,000 to 25,000 export containers unable to reach the port.

In a joint statement, Pakistan Textile Exporters Association (PTEA) Patron-in-Chief Khurram Mukhtar and Chairman Sohail Pasha emphasised that a grave crisis is unfolding, as persistent road blockages have paralysed trade and disrupted national supply chains.

They revealed that approximately $400-500 million worth of textile goods have been stranded for the past 11 days, severely affecting Pakistan’s exports.

The textile industry, which is a cornerstone of Pakistan’s export economy, is suffering significant losses due to these disruptions. In Faisalabad, over 1,000 containers related to the textile industry are stuck because of the road closures, leading to a serious shortage of raw materials and interruptions to factory production, Mr Shafqaat said.

PTC Chairman Fawad Anwar said the prolonged transportation disruptions are inflicting severe damage on Pakistan’s economy, causing disruptions in supply chains, the loss of perishable goods, the deterioration of stranded vehicles, and rising costs for businesses.

The PTC has urged the federal and provincial governments of Sindh and Punjab to take immediate action to resolve these issues and restore normalcy.

Khurram Mukhtar said export orders are delayed or cancelled, jeopardising Pakistan’s credibility in international markets. Payment cycles have been disrupted, creating financial strain on businesses across sectors, he added.

He warned that the national exchequer would lose an estimated $800-900m if the situation continues unchecked.

Export facilitation scheme

Meanwhile, the National Assembly’s Standing Committee on Commerce on Monday expressed concern over the delay in finalising the export facilitation scheme.

The committee, chaired by MNA Muhammad Jawed Hanif Khan, noted that the FBR had issued a draft SRO on April 12, but the final notification has yet to be issued.

The members raised concerns about the negative impact of these delays, particularly the increased demurrage costs on containers held at ports.

The committee also passed ‘The Anti-Dumping Duties (Amendment) Bill, 2025’. The Ministry of Commerce informed the committee about the amendments imposed on imports of goods used in foreign grant-in-aid projects. These amendments are intended to provide retrospective relief from July 1, 2020.

Published in Dawn, April 29th, 2025