Pakistan’s industrial heartland is suffering unprecedented economic damage as the escalating US-Israel-Iran conflict severely disrupts vital supply chains, a prominent business leader has warned.
Mian Zahid Hussain, President of the Pakistan Businessmen and Intellectuals Forum, stated on Friday that the ongoing hostilities and the blockade of the Strait of Hormuz are inflicting deep wounds on the nation”s economy. He noted the turmoil has jeopardised over a fifth of the world”s oil and gas exports and triggered a significant downgrade in economic forecasts for the Gulf Cooperation Council.
The logistical repercussions for Karachi’s industrial sectors have become acute. According to Hussain, industrial zones including SITE, Korangi, and Landhi are contending with a severe shortage of empty containers and exorbitant increases in freight charges as international shipping lines reroute to avoid the volatile maritime corridors.
This disruption has created a crippling backlog at Karachi Port Trust and Port Qasim, with essential raw material imports for the textile, pharmaceutical, and manufacturing sectors facing major delays. Consequently, factory output is diminishing, export orders are being compromised, and production costs have soared, raising the prospect of widespread layoffs if alternative supply routes are not established swiftly.
Hussain acknowledged the diplomatic initiatives of Pakistan”s civilian and military leadership, highlighting recent high-level visits to Saudi Arabia as a reaffirmation of the country”s commitment to regional peace and its allies. He pointed to Prime Minister Shehbaz Sharif’s meeting with Crown Prince Mohammed bin Salman as a clear message of solidarity.
The business figure also cited the emergency visit to Riyadh by Chief of Army Staff, Field Marshal Asim Munir, as a crucial move to reinforce the September 2025 Strategic Mutual Defence Agreement. Discussions with Saudi Defence Minister Prince Khalid bin Salman focused on joint security measures. Furthermore, he recognised diplomatic interventions led by Deputy Prime Minister Ishaq Dar, which include a formal request for a backup oil supply route via Saudi Arabia”s Yanbu Sea Port.
While advocating for an immediate end to hostilities, Hussain asserted that unprovoked aggression undermining the stability of Gulf partners cannot be overlooked. He described Pakistan”s strategy as a complex balancing act, aimed at preventing strategic partners from being drawn further into a conflict that threatens global prosperity, while simultaneously enacting domestic austerity measures.
Concluding his remarks, Mian Zahid Hussain urged international stakeholders to prioritise diplomacy, cautioning that a prolonged conflict will only deepen the supply chain crisis and inflationary pressures affecting millions. He reaffirmed the business community”s support for the government”s efforts to navigate the crisis and secure national energy security.