Rising costs, transport strike threaten garment export

LAHORE: Pakistan’s readymade garment exporters have called on the government to urgently intervene to ease mounting cost pressures and logistics disruptions, warning that a combination of volatile fuel prices, high utility tariffs and an ongoing nationwide transporters’ strike is threatening the competitiveness of the country’s export-oriented apparel sector.

The appeal was made by PRGMEA North Zone Chairman Imran Salahuddin, who said exporters are grappling with unpredictable fuel prices, high electricity and gas tariffs, expensive financing, delayed refunds and disruptions in cargo movement, all of which are making it increasingly difficult for the sector to remain competitive in international markets.

He said the newly-introduced daily petroleum pricing mechanism has added further uncertainty for exporters, who typically negotiate orders months in advance at largely fixed prices, and stressed that Pakistani exporters cannot simply pass every increase in energy and transportation costs on to international buyers.

He said the situation has been further aggravated by the nationwide transporters’ strike, which has entered its fifth consecutive day.

With cargo movement severely disrupted and warehouses reportedly refusing additional consignments, export containers are stranded at factories, raising the risk of missed shipment schedules, demurrage, detention and damage to buyer confidence.

Copyright Business Recorder, 2026