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Road blockages in Sindh severely hitting Trade and Economy: LCCI demands immediate resolution

2 years ago
in Business
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Both federal and provincial governments to act decisively and immediately address the situation: LCCI President Mian Abuzar Shad

LAHORE: The Lahore Chamber of Commerce and Industry has expressed grave concern over the ongoing road closures in Sindh, which have brought national trade, supply chains and economic activities to a standstill.
“The blockade, initiated by protestors since April 17, has caused an unprecedented crisis, leaving over 100,000 trucks, carrying essential goods, stranded for nearly two weeks, resulting in massive financial losses and crippling the logistical framework of the nation”, said LCCI President Mian Abuzar Shad, Senior Vice President Engineer Khalid Usman and Vice President Shahid Nazir Chaudhry in a statement.

Read also: Chairman NAB holds in-depth dialogue with business community during his significant visit to LCCI

The LCCI office-bearers said that the severe consequences of this ongoing situation should be eye opener for the decision makers. The protestors’ actions have not only delayed the movement of vital trade goods but have also led to significant collateral damage. Thousands of sacrificial animals, intended for Eid ul Azha, have died due to the lack of transportation and inability to reach the markets. This, in turn, has led to immense suffering for livestock traders, farmers and the entire agricultural sector, with no immediate resolution in sight.

They said that the closure has led to the destruction of perishable goods, such as fruits, vegetables, dairy products and pharmaceuticals, causing millions of rupees worth of losses for producers, exporters and consumers alike. With the halted trade routes, the critical flow of raw materials for industries, especially in Punjab, has been severely disrupted, putting the entire manufacturing sector on the verge of collapse. Textile, food processing, chemical and pharmaceutical industries are among the worst affected, with production lines at a standstill due to shortages of essential inputs.

The LCCI office-bearers estimated that the ongoing disruption is causing a daily economic loss of approximately Rs. 500 billion to Pakistan’s economy. The transportation sector alone is suffering losses exceeding Rs. 100 billion daily, a figure that is growing with each passing day of blockades.

For industries reliant on just-in-time inventory and supply chains, the situation has become dire, threatening the stability of thousands of businesses, particularly small and medium enterprises (SMEs), which form the backbone of Pakistan’s economy.
Mian Abuzar Shad, Engineer Khalid Usman and Shahid Nazir Chaudhry said that the trade disruption has led to delays in the delivery of exports, which are facing cancellations and contract defaults from international buyers.

This puts Pakistan’s reputation as a reliable trade partner at serious risk and threatens the livelihoods of millions of workers employed in export industries.
They also raised concerns about the broader social and humanitarian impact of the road closures. Local communities in Sindh, Punjab and other affected regions are facing critical shortages of essential goods, including food, medicine and daily necessities.

In the absence of sufficient supplies, local markets are experiencing severe price hikes, further burdening the lower-income population, especially in rural areas.
The ongoing blockades have also escalated tensions in already impoverished regions, leading to protests from workers, traders and ordinary citizens who have been directly impacted by the economic standstill.

The LCCI fears that prolonged road closures could lead to social unrest, particularly in the wake of rising inflation, unemployment and economic hardship.
The LCCI leadership called upon both federal and provincial governments to act decisively and immediately address the situation. They urged the authorities to reopen the blocked routes, prioritize the movement of essential goods and facilitate the clearance of stranded cargo.

Additionally, the LCCI has stressed the importance of engaging protestors in a constructive dialogue, exploring peaceful solutions that do not cause further harm to the nation’s economic infrastructure.
“We acknowledge the right to peaceful protest, but the economic cost of these blockages is unbearable for the country. The national economy cannot withstand further damage, especially when our businesses and industries are already struggling with high inflation, energy crises and international trade challenges,” said LCCI President Mian Abuzar Shad. He added that the government must step in immediately to resolve this issue for the greater good of the nation.

The LCCI office-bearers said that the current crisis calls for a comprehensive strategy to prevent such disruptions in the future, including the establishment of protocols for handling protests in ways that do not undermine national trade and economic activities. The Chamber strongly believes that the government, business community and civil society must work together to develop long-term solutions for economic resilience.
The Lahore Chamber of Commerce and Industry has urged all stakeholders, including business owners, workers, trade associations and the government, to unite and demand immediate action. “This is not just an issue of business losses; this is a matter of national security and economic survival,” said Engineer Khalid Usman, Senior Vice President of the LCCI. “The government must act with urgency to clear the roads and prevent further damage to our economy.”

The President of the Lahore Chamber of Commerce and Industry (LCCI), Mian Abuzar Shad, has called on the Punjab government to take immediate action to clear Mall Road in Lahore, where protests have been ongoing for several weeks. He highlighted that these protests are severely disrupting trade activities in the area. Mian Abuzar Shad further emphasized that Mall Road is officially banned for protests and rallies, but protestors continue to violate this rule, causing significant economic setbacks.

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