Floods in Punjab impact supply chains; inflation threats emerge
They stated that shipments from the port city of Karachi to various parts of Punjab, as well as consignments returning from Punjab to Karachi, are experiencing delays.
All Pakistan Goods Transport Alliance President Nisar Hussain Jafri said that over the past three days, the supply chain has faced delays of two to three days.
Under normal conditions, shipments (both import and export) from Karachi to different areas of Punjab typically take two to three days, excluding motorway routes.
The same time is usually required for the return of empty or loaded containers from Punjab.
He added that goods carriers are encountering problems because city administrations in several areas of Punjab have not put up diversion signs for container trucks.
As a result, carriers often reach points where they cannot move forward.
Jafri urged the authorities to install proper diversion signs to save both diesel and time.
Fertiliser supply via flood-hit areas suspended:
Executive Director of the Fertiliser Manufacturers of Pakistan Advisory Council (FMPAC), retired Brig Shershah Malik, said shipments passing through flood-affected areas such as Sutlej, Ravi, and Chenab had almost been suspended.
However, the fertiliser movement on motorways and highways was still smooth, but “if floods prolong, fertiliser movement and consumption will definitely be impacted.
“In the next two to three days, floods will cross Multan and on Sept 6, 2025, will enter Sindh. After that, the actual ground situation will become clear,” he said.
He added that shipments to sales points in river corridors and across the rivers had been suspended, though fertiliser application in those areas had also stopped.
Hence, there was no immediate chance of shortage in flood-affected regions.
President of the Falahi Anjuman Wholesale Vegetable Market, Super Highway, New Subzi Mandi, Haji Shahjehan, said onion supply from Balochistan and potato supply from cold storages had declined in Karachi due to rains and floods.
Oil Companies Advisory Council (OCAC) Secretary General Syed Nazir Abbas Zaidi said he had not yet noticed any disruption in oil supplies to the upcountry. “I do not know what will happen in the next couple of days,” he added.
Pakistan Pharmaceutical Manufacturers Association (PPMA) Chairman Tauqeer-ul-Haq said that so far there had been no reports of supply disruption and that the supply of medical goods was continuing normally.
Floods pose risk to agri output:
Mohammad Shahroz of Insight Securities said recent flooding in KP and Punjab posed risks to agricultural output and supply chains, which could reignite supply-side inflationary pressures. “It is important to safeguard the nascent stabilisation and strengthen the economic base before shifting gears to growth,” he added.
He estimated headline inflation at 4.1pc for Aug 2025 compared to 9.6pc in the same month last year and 4.1pc in July 2025.
On a month-on-month basis, inflation is expected to rise 0.4pc due to higher food prices, though this has been partly offset by lower electricity charges and declining LPG prices.
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