Business leaders warn of economic crisis as road blockades cripple trade

KARACHI: The business community has expressed serious concerns over the ongoing sit-in and road blockades across Sindh, which have caused immense losses to trade and industry in the country.

Goods transporters also took to the streets to protest against the closures and the stranding of their vehicles. The Goods Transporters Association staged demonstrations, demanding that the government act immediately to reopen roads for the movement of vehicles stuck for the past several days.

Jawed Bilwani, president of the Karachi Chamber of Commerce and Industry (KCCI), voiced serious concern over the continuing sit-in and blockades near Babarloi town in Khairpur, saying that the situation had brought vehicular movement on the National Highway to a standstill, severely affecting the transportation of goods across Sindh and beyond.

Bilwani acknowledged the constitutional right to peaceful protest but emphasised that prolonged blockades of major trade routes -- particularly those used for inter-city cargo and exports -- have inflicted tremendous losses on the business community and hampered time-sensitive export consignments, especially of perishable goods.

“The entire supply chain stands paralysed due to the closures and sit-ins, with long queues of containers and commercial vehicles stranded at Rohri, Ali Wahan, and other key arteries,” he said. “This has not only disrupted internal commerce but also threatens Pakistan’s export commitments and damages its credibility in global markets.”

Bilwani stressed that while the concerns of the protesters must be addressed through dialogue and mutual respect, it remains the government’s responsibility to ensure that national economic activity does not grind to a halt. “The situation is not only hurting businesses and industries but also jeopardising employment and trade at a time when the country is already facing serious economic challenges,” he added.

He urged the federal and provincial governments to take urgent steps to facilitate negotiations with protest leaders, restore traffic on the National Highway, and protect the movement of commercial goods and export cargo to avert further economic damage. “The economic repercussions of this blockade are growing by the hour. We appeal for an immediate resolution in the interest of the economy and the public at large,” he concluded. The sit-in, called by the Karachi Bar Association and supported by the Sindh High Court Bar Association along with nationalist groups and civil society, has led to widespread blockades in protest against the federal government’s controversial plan to construct six new canals from the Indus River.

Sheikh Umer Rehan, chairperson of the Pakistan Vanaspati Manufacturers Association (PVMA), warned that the ongoing protests and road closures on national highways connecting Sindh to other provinces have severely disrupted the transportation of edible oil, cooking oil and ghee across the country. As a result, thousands of containers are stranded at various points, causing losses worth billions of rupees to the industry. Rehan expressed serious concern over the growing difficulties faced by manufacturers, stating that export consignments are also unable to reach ports on time, risking the cancellation of foreign orders and creating further financial strain for industrialists. He emphasised that the disruption of transportation is not only affecting the supply of essential food items but has already led to shortages of edible oil and ghee in several areas, increasing hardships for the general public. Industries heavily reliant on imported raw materials, particularly those involved in edible oil production, are facing severe operational slowdowns. If immediate action is not taken to reopen the roads, the shortage could worsen significantly in the coming days, he warned.

Rehan strongly urged the federal and provincial governments to act swiftly to clear the highways and national routes of protesters to ensure the uninterrupted supply of food items nationwide and to restore the logistics network, including exports. He cautioned that failure to resolve the situation promptly would not only exacerbate shortages of essential goods like edible oil, cooking oil and ghee but could also trigger inflation and bring industrial activity to a standstill. Highlighting the broader implications, Rehan noted that the edible oil sector fulfils a major portion of the country’s food needs, and that continued disruptions could have a damaging impact on the national economy. He appealed to the authorities to take immediate and practical measures to protect the industry from further losses, stressing that the ongoing road blockages are also harming Pakistan’s reputation in international markets.

Meanwhile, Asif Iqbal Paracha, chairperson of the Pakistan Soap Manufacturers Association (PSMA), expressed concern over the closure of major highways in Sindh, warning that the situation is causing a severe financial crisis across the economy. “If this situation persists, there will soon be an acute shortage of basic raw materials for soap and allied commodities throughout the country,” he warned.

Paracha noted that export consignments worth hundreds of millions have been stranded for the past 12 days and cautioned that if the government fails to swiftly clear the blockades, the national exchequer could suffer losses amounting to billions of dollars. Delays and cancellations in the delivery of export orders have already damaged Pakistan’s reputation in international markets, he added.