Pakistan textile exports face risks from Middle East shipping disruptions

Middle East tensions and maritime disruptions in the Red Sea are creating significant economic challenges for Pakistan's export industry, particularly the textile sector. Due to threats from the Houthi movement in Yemen, many global shipping companies have diverted vessels from the Suez Canal to the longer route around South Africa, leading to increased fuel, insurance, and administrative costs.

Industry representatives report a massive surge in freight expenses. For instance, the cost of shipping a single container from Karachi to New York has risen from approximately $2,000 to $9,000, representing a 350 percent increase. Similarly, shipping rates from China to Pakistan have nearly doubled.

Kamran Arshad, Chairman of the All Pakistan Textile Mills Association (APTMA), warned that these delays and rising costs make Pakistani products less competitive. He noted that international buyers are becoming increasingly cautious regarding delivery guarantees and final pricing. There is a growing risk that customers may delay, reduce, or shift orders to competing suppliers in countries like India, Bangladesh, and China, which may offer more reliable logistics and lower costs.