Pak economic slowdown: Industrial activity reduced by 40 percent amid security measures for Iranian President's visit

Despite the local holiday declared in the city's economic hub, several export-oriented industries resumed operations on Tuesday, braving the challenges.

A notable factor hindering production and export targets was labor shortage, which was exacerbated by disruptions in cargo movement due to road blockades aimed at ensuring the safety of the visiting dignitary. The closure of major arteries like MA Jinnah Road and Shahra-e-Faisal led to widespread traffic jams, disrupting both the movement of workers and the flow of goods, Dawn reported.

In response to the holiday notice issued by the Sindh Labor Department, many exporters attempted to maintain production to meet the deadlines set by foreign buyers. However, the situation worsened with the closure of Shahrah-e-Faisal in the afternoon, resulting in migration of a large number of workforce, affecting the operation of the second shift.

Reflecting on the impact, an industrialist from the Korangi industrial area lamented that production and export shipments have been limited to only 40 per cent of their normal capacity due to road blockages. Similarly, Javed Bilwani, chief coordinator of the Value Added Textile Forum, highlighted that more than half of the units in the site area and other industrial areas remained closed, leading to a 60 per cent decline in production and export volumes.

Its impact extended beyond Karachi, and a similar scenario was seen in Lahore due to the security measures adopted for the visiting dignitary. Lahore contributes 20 percent to the country's total exports. The closure of main routes increased the challenges faced by traders and laborers, further affecting economic activities.

Faisal Anees Majeed, a leading commodity importer/exporter, said that the closure of MA Jinnah Road and Shahra-e-Faisal resulted in only 15-20 per cent of shops running in Dandiya market as traders and laborers were forced to deal with the incoming traffic. Had to struggle for. gridlock

Warmly welcoming the visit of President Raisi, Korangi Association of Trade and Industry (KATI) President Johar Kandhari expressed optimism about the possibility of enhancing trade and bilateral relations between Pakistan and Iran. He stressed the need for concerted efforts to capitalize on untapped trade opportunities and boost economic cooperation between the two countries, reports Dawn.