War risk, freight surge endanger trade outlook for Pakistan: Atif Sh,

KARACHI: Atif Ikram Sheikh, President FPCCI, has stressed that escalating military tensions in the Middle East and the closure of the Strait of Hormuz have triggered alarm across Pakistan’s trade and industry landscape – with business leaders warning that soaring freight costs and delayed shipments could derail country’s economy. Atif Ikram Sheikh highlighted 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. The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has called for immediate government intervention to protect the nation’s trade and industrial sectors. FPCCI Chief explained that the geopolitical instability in the Gulf poses a threat to the country’s export competitiveness – with approximately 80 per cent of Pakistan’s crude oil imports and a quarter of our LNG transiting through the Strait of Hormuz – and, any prolonged disruption will inevitably bleed into our foreign exchange reserves and trigger severe inflationary pressures.