KARACHI — Devastating floods in Punjab have significantly disrupted supply chains, posing a risk of rising inflation as goods transport is delayed on non-motorway routes. Transporters report that while motorway and highway routes remain operational, shipments between Karachi and Punjab are facing delays of two to three days due to the flooding.
Nisar Hussain Jafri, President of the All Pakistan Goods Transport Alliance, criticized the local administrations for failing to put up diversion signs for container trucks. This lack of guidance has led to unnecessary detours, wasting time and resources for transporters. He urged for immediate action to alleviate these logistical headaches.
Fertiliser shipments through flood-hit regions like the Sutlej, Ravi, and Chenab rivers have been suspended, according to Retired Brigadier Shershah Malik of the Fertiliser Manufacturers of Pakistan Advisory Council. While motorway and highway transport are still functional, prolonged flooding could disrupt fertiliser supply and usage.
Amid these disruptions, the decline in the supply of essential vegetables such as onions and potatoes in Karachi is becoming apparent. The challenges are believed to stem from the ongoing rains and floods, affecting transport from regions like Balochistan.
The flooding is raising alarms about potential impacts on agricultural outputs, which could exacerbate supply-side inflation. Insight Securities’ Mohammad Shahroz noted that these floods threaten the fragile economic stability. Inflation, estimated at 4.1% for August 2025, could see a further increase due to rising food prices, despite declining electricity and LPG costs.
While the oil supply chain remains unaffected for now, as noted by the Oil Companies Advisory Council, any future disruptions remain uncertain.
With the floods expected to move further into Sindh by September, Pakistan remains on high alert, and efforts are emphasized on stabilizing the supply chain to prevent further economic strain. The potential long-term effects could see a significant impact if the situation does not resolve soon.
