Stock market, business community, and gold market ‘feel the heat’
TRANSPORTERS’ STRIKE SENDS SHOCKWAVES THROUGH PAKISTAN’S ECONOMY
By Aneel Ahmed Usmani
A nine-day-long strike by cargo transporters has crippled supply chains across Sindh, causing severe disruptions to business operations, industrial production, and imports/exports. The ongoing transport blockade has already started to ripple through Pakistan’s stock market, creating uncertainty in the business community, and has even affected the gold market. As the strike continues, concerns about long-term economic repercussions grow, prompting calls for urgent government intervention.
Strike Paralyses Supply Chains and Business Activity: The ongoing strike, which began on December 8, 2025, was triggered by the enforcement of the Motor Vehicle Ordinance 2025, under which traffic authorities imposed heavy fines, stringent penalties, and vehicle impoundments on transport operators. While these regulations were designed to improve road safety, transport unions argue that they were implemented without sufficient consultation, rendering routine transport operations financially unfeasible. The result has been a nationwide disruption in the movement of goods, with supply chains from key ports like Karachi severely affected.
Businesses, particularly in Karachi, have been hit hard, with many facing the risk of shutting down production lines due to the halt in the delivery of essential raw materials and finished goods. The Overseas Investors Chambers of Commerce and Industry (OICCI) has voiced grave concerns, with members reporting factory shutdowns and severe constraints on port operations. Also other top-notch business associations like FPCCI, KCCI, KATI have raised serious concerns over this prolonged strike and calls for taking correct measures to end this impasse between the government and the transporters.
Abdul Aleem, Secretary General of OICCI in recent talks with a local daily said .”This strike has led to the complete suspension of industrial raw material supply and severely impacted the delivery of imported goods. Many factories are now at risk of shutting down production lines.” The disruption has also resulted in a significant backlog at ports, with containers of goods stranded, leading to financial losses in the form of demurrage and detention charges.
The stock market has been quick to reflect the broader economic turmoil caused by the strike. Investors, already on edge due to global economic pressures, have reacted nervously to the uncertainty surrounding Pakistan’s supply chains. Pakistan Stock Exchange (PSX) saw a noticeable dip in trading volumes as concerns over the long-term impact of the strike weighed on investor sentiment.
Blue-chip stocks in industries such as textiles, steel, and food production have faced sharp declines as investors feared reduced earnings in the wake of production halts and logistical delays. Textile exporters, for instance, have seen their stock prices fall amid concerns that the delayed shipments would affect their ability to meet international demand, potentially damaging their reputation in global markets.
Analysts have expressed concern that the prolonged disruption could drag down the broader economy, especially if the government fails to find a resolution.
The business community, including major industry associations, has urged both the federal and provincial governments to engage in dialogue with the transport unions to resolve the issue. Pakistan Vanaspati Manufacturers Association (PVMA) Chairman Sheikh Umer Rehan warned that the suspension of raw material supplies would have a cascading effect, potentially bringing industrial production to a halt.
The financial losses stemming from halted deliveries and backlogs at ports are expected to intensify as the strike persists. Steel producers are also feeling the pinch, with the Pakistan Association of Large Steel Producers (PALSP) warning that prolonged disruptions could lead to layoffs and wage losses, further exacerbating Pakistan’s unemployment crisis.
In the face of economic uncertainty and stock market volatility, investors have turned to safer assets, resulting in a notable increase in demand for gold. Historically, during times of economic distress, investors seek refuge in precious metals, and this strike has been no exception.
The price of gold in Pakistan saw an uptick as businesses and individuals sought to hedge against potential losses in other asset classes. The gold market is already under pressure due to global inflation concerns, and this local disruption has only amplified the appeal of the yellow metal as a store of value.
Industrialists are increasingly concerned about the long-term damage to Pakistan’s industrial credibility if the strike continues.
The Motor Vehicle Ordinance 2025, which triggered the protests, is seen by many as necessary for road safety, but its enforcement without consultation has led to significant consequences for the transportation and logistics sectors. Transport leaders have demanded that the government either withdraw or amend certain clauses of the ordinance, warning that the strike could escalate further if their demands are not met.
With industrialists, businesses, and investors all sounding the alarm, the Sindh government faces increasing pressure to resolve the transporters’ strike and prevent further economic damage. The situation has already wreaked havoc on supply chains, business operations, and financial markets, and if unresolved, could lead to even greater economic instability.
As calls for dialogue between the government and transport unions intensify, Pakistan’s economic future hangs in the balance. The government must act quickly to find a solution, or risk further destabilizing an already fragile economy.
