Sharp 25pc increase in goods transport fares threatens industrial survival

By Commerce Reporter

LAHORE — The business and industrial community has expressed serious concern over the reported 25% increase in goods carriers’ transport fares, warning that this decision will further intensify the already severe pressure on industry, trade, and the overall economy.

At a time when manufacturers are already struggling with high electricity tariffs, expensive gas, heavy taxation, costly borrowing, shrinking demand, and rising raw material prices, any major increase in transportation cost directly adds to the cost of production and distribution. This ultimately makes local industry even less competitive and puts additional burden on consumers.

Industry representatives on the condition of anonimity said that transport is a critical part of the supply chain. When freight charges rise by 25%, the impact does not remain limited to transporters and manufacturers alone. It affects the prices of raw materials, finished goods, food items, pharmaceuticals, packaging materials, consumer goods, construction inputs, and essential daily-use products. In such circumstances, survival of industry becomes increasingly difficult.

The business community stated that Pakistani industry is already operating under extremely challenging conditions. Many factories are facing liquidity pressure, reduced margins, and weak purchasing power in the market. A sharp jump in transportation cost can force many units to reduce production, delay dispatches, pass on higher costs to customers, or in some cases even suspend operations.

They emphasized that the government must immediately take notice of the worsening cost of doing business. If the industrial sector continues to face one shock after another without meaningful relief, the country may witness:

• further decline in industrial output,

• higher inflation,

• reduced exports,

• unemployment,

• and supply disruptions in essential goods.

The business community urged the government to engage with all stakeholders, including transporters, industry, and trade bodies, to find a balanced solution. Temporary relief measures and policy support are urgently needed so that the productive sector can continue functioning.

They further stressed that industry cannot survive on rising costs alone. For economic stability, the government must provide a workable environment through:

• lower energy costs,

• rational taxation,

• reduced markup rates,

• better access to working capital,

• and measures to control unnecessary increases in logistics costs.

The statement concluded that if immediate steps are not taken, the combined burden of energy, finance, taxation, and transport may push many industrial units into deeper crisis. Protecting industry is essential not only for business continuity, but also for employment, exports, tax revenue, and availability of goods in the market.

“If industry does not survive, the economy cannot survive.”