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extile mills are facing difficulties after protests in Sindh, led by nationalist groups opposing the construction of new canals, have brought transportation to a halt.
Mill owners say they have their export containers packed and ready, awaiting shipment to international markets via Karachi Port. They are now facing financial losses due to missed deadlines and are increasingly concerned about the possible cancellation of export orders.
Although Prime Minister Shahbaz Sharif and PPP chairman Bilawal Bhutto Zardari reached an agreement on April 24 that no canals would be constructed without consensus and a meeting of the Council of Common Interests has been scheduled for May 2 to address the issue, the protests in Sindh have not subsided. As a result, traffic remains severely disrupted, causing significant delays in the delivery of consignments.
Hazar Khan, vice chairman of the Pakistan Hosiery Manufacturers and Exporters Association, North Zone, says three of his export containers, carrying knitted garments and bound for Europe are stranded near Sukkur on the National Highway. “Two more containers are loaded and ready for dispatch at my factory,” he complains.
“There’s a severe container shortage. We’re waiting for either the blocked containers to return empty or for containers carrying imported goods to reach the factories so that they can be reloaded and sent to the port,” he says.
Khan says that imported raw materials are also stuck at the port, preventing manufacturers from preparing their next shipments.“Theimported materials include yarn, zippers, labels and various accessories. With these stuck at the port, we can’t proceed with the upcoming consignments.”
Khan says exporters typically receive payments two weeks after dispatching shipments to customers. These funds are then used to pay factory workers and vendors.“Now that shipments are stuck in transit, this financial cycle is disrupted. We don’t have enough liquidity to pay salaries or settle vendor dues.”
Highlighting the time-sensitive nature of garment exports, especially to Europe, he says,
“These products need to be on store shelves at a specific time. If we miss that window, we risk order cancellations and are forced to ship by air, which drastically increases costs.” He notes that shipping by sea costs around 30 to 40 cents per kilogram, whereas air freight ranges from $3 to $3.50 per kilogram.
“If it comes to air shipping, factory owners will suffer major losses. If order cancellations begin, the entire industry will face deepsetbacks. We’re losing an estimated $1.5 to $2 million in daily exports due to these road blockades.”
”In Bangladesh, even during protests, ambulances and export containers were never blocked.They understand that just as saving lives requires clear roads for ambulances, sustaining the economy depends on uninterrupted exports.”
Hazar Khan says that the Sindh government could have ensured the timely delivery of export consignments through administrative measures but seems to have allowed protesters to block roads to pressure the federal government.
The textile industry has been struggling with high energy tariffs and costly credit, making it difficult to remain competitive in global markets.
Over the past year, the government has taken several steps to provide relief. Notably, it reduced interest rates and Prime Minister Shahbaz Sharif recently announced a major cut in electricity tariffs for the industry.
These developments sparked optimism that the country’s exports would finally see a strong resurgence.But the rapidly changing situation in recent weeks has once again dimmed those hopes, reviving concerns within the export community.
“Earlier, Pakistan’s exports were under threat due to tariffs imposed by the United States. Now, local protestors have effectively shut down the economic lifeline of the country,” says Khan.
He says that although the US has temporarily suspended its tariffs initially imposed on countries other than China for three months, the threat still lingers for Pakistan.
“If the US-China tariff war doesn’t resolve, China may shift focus to European markets to maintain its export volumes. That would increase competition for us in Europe,” he says.
Khan says while global factors have always been beyond Pakistan’s control, the country is now also failing to resolve internal challenges.“The current situation reflects our diminishing ability to manage domestic issues that directly affect our economy.”
Several textile industry associations haveexpressed strong concern about the situation. At a joint press conference held on April 23, at the central office of the Pakistan Hosiery Manufacturers and Exporters Association, leaders from various value-added textile associations called on the government to take immediate action and ensure the clearance of all road blockades
RehanNaseemBharara, president of the Faisalabad Chamber of Commerce and Industry, says he has been in contact with government officials for several days but his efforts have yielded no results so far.
“As soon as the problem began, I reached out to the Prime Minister’s Office. We also contacted the Sindh chief minister and the interior minister, hoping for a swift resolution. Unfortunately, no solution has emerged,” he says.
“The delivery of more than 10,000 export containers has been delayed due to the ongoing road closures. This gives you an idea of the massive economic blow. If roads remain closed for a week, our entire export cycle is pushed back by one and a half to two months,” he says.
He says Pakistan has limited access to international shipping vessels, with only one vessel typically available per week.“We’ve already missed two vessels. If we miss the third one next week, timely delivery of our export orders will become impossible,” he says.
Ihsaan Afzal Khan, coordinator to the prime minister, says that the federal government is in active communication with the Sindh provincial administration to have the road blockades lifted.
“Blocking roads is not a solution to any issue. If there’s propaganda suggesting that the Punjab is stealing Sindh’s water, then it’s the responsibility of the provincial government not to become part of this misinformation.The federal government has made it clear that all canal-related matters will be addressed through consensus and there will be no unilateral decision making,” he says.
Ihsaan says that even a conservative estimate - assuming 50 per cent of exports from northern regions, including the Punjab, are affected - translates to daily losses of over $50 million.
He expresses hope that the ongoing protests on Sindh’s highways will stop within a day or two and that the movement of export and import goods will return to normal.
The writer has beenassociated with journalism for the past decade.He tweetsnaeemahmad876