Regional Instability Poses Fresh Challenges for Pakistan’s Industry, Says Shamoon Zaki

By: Aziz Khatri

 Karachi: President of the Pakistan-Indonesia Business Forum and noted industrialist Shamoon Zaki has warned that rising geopolitical tensions in the region could pose serious challenges for Pakistan’s industrial sector and trade activities.

In a statement, Shamoon Zaki highlighted that ongoing conflicts, particularly the situation along the Pak-Afghan border and instability in the Gulf region, along with disruptions in global supply chains, may create uncertainty in trade and energy markets, placing additional pressure on Pakistan’s economy.

He noted that global conflicts typically impact energy, shipping, and supply chain systems first, leading to higher production costs and slower trade flows. Tensions in the Gulf region, he said, could result in fluctuations in oil prices and increased shipping costs, directly affecting countries like Pakistan that rely heavily on imported energy.

Zaki pointed out that Pakistan’s industries are already grappling with high energy tariffs, financial constraints, and rising raw material costs. In such a scenario, any escalation in regional tensions could further undermine production capacity and export competitiveness, particularly in key sectors such as textiles, steel, chemicals, and food processing.

Referring to regional trade dynamics, he emphasized that the Pak-Afghan border situation holds critical importance, as Afghanistan serves both as a key export market and a vital transit route to Central Asia. Any deterioration in border conditions could disrupt bilateral and transit trade, as well as regional logistics networks.

Despite these challenges, Shamoon Zaki stressed that shifting global trade patterns also present new opportunities. He said that many countries are reorganizing their supply chains and trade priorities, creating space for emerging markets. Pakistan, he suggested, must proactively expand its export base and explore new markets alongside its traditional partners.

He underscored the importance of strengthening economic ties with Southeast Asian nations, particularly Indonesia and Malaysia, as well as other ASEAN economies. According to him, there is significant potential for enhanced cooperation in sectors including textiles, agriculture, food processing, pharmaceuticals, and palm oil.

Zaki further stated that aligning industrial policy with export promotion and regional economic integration could attract new investments and improve the competitiveness of domestic industries in global markets.

He urged the government to provide greater support to the industrial sector, ensure energy stability, and introduce practical incentives for exporters in light of evolving global conditions. Strengthening economic diplomacy and leveraging Pakistan’s strategic geographic position, ports, and trade routes, he added, would be crucial in navigating current challenges.

“Through coordinated efforts between the government and the business community, Pakistan can not only withstand global shocks but also unlock new economic opportunities,” he concluded.