Pakistan’s top business body on Monday urged the federal government to formulate an emergency economic response strategy, warning that escalating tensions between the United States and Iran could disrupt regional trade, energy supplies and the country’s fragile economic recovery.
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) called on the Ministry of Finance, the Ministry of Commerce, the Federal Board of Revenue (FBR) and the State Bank of Pakistan (SBP) to establish a joint task force with representatives of the business community to monitor the evolving geopolitical situation and develop contingency measures aimed at ensuring trade continuity and protecting domestic industries from external shocks.
FPCCI President Atif Ikram Sheikh said Pakistan’s economy, which had recently shown signs of stabilization through improved fiscal discipline, remained vulnerable to any sharp increase in global oil prices or disruptions in maritime trade.
He warned that renewed hostilities in the region posed serious risks to regional stability, global trade flows and energy supply chains, stressing that proactive macroeconomic management was essential to prevent recent economic gains from being undermined. He also urged the government to work closely with the business community to develop strategic safeguards for energy imports and shield export-oriented industries from potential disruptions.
FPCCI Senior Vice President Saquib Fayyaz Magoon said any conflict in the Persian Gulf could sharply increase freight costs, delay shipments and disrupt supply chains, placing additional pressure on Pakistan’s manufacturing sector.
He said small and medium-sized enterprises (SMEs), already struggling with high energy tariffs and elevated borrowing costs, could face severe financial distress if fuel prices surged or essential raw materials became scarce. He urged policymakers to ensure uninterrupted access to industrial inputs while limiting non-essential foreign exchange outflows.
FPCCI Vice President and Regional Chairman Sindh Abdul Mohamin Khan said Karachi, as Pakistan’s principal port city and industrial hub, was particularly exposed to any disruption in regional shipping routes.
He said industries in Sindh were already coping with rising operating costs and economic challenges, calling for the establishment of fast-track business facilitation centres in every district and closer coordination between federal and provincial authorities to improve port operations. He added that protecting Pakistan’s export supply chain was essential to prevent a further widening of the trade deficit.