Middle East crisis hits Pakistan industry

The escalating conflict between Iran, US and Israel has begun to affect Pakistan’s industrial sector, disrupting energy supplies and raising fears of supply chain problems for manufacturers dependent on imported components.

Fertiliser producer Agritech Limited has reportedly shut down its urea production facility after the suspension of RLNG supply, due to ongoing regional crisis. 

In a notice to the PSX, the company said Sui Northern Gas Pipelines Limited informed it that an LNG supplier had declared a potential “force majeure” due to disruptions in Middle East LNG production facilities. As a result, RLNG supply to the fertilizer plant was halted from March 4 until further notice.

The shutdown highlights the vulnerability of Pakistan’s energy-dependent industries to global supply disruptions, particularly as the country relies heavily on imported LNG.

Meanwhile, Pakistan’s auto sector may also face possible supply disruptions. According to a corporate briefing cited by market analysts, Indus Motors expects delays in the arrival of imported auto parts due to shipping congestion, rising freight rates and logistical disruptions in current situation.

Furthermore, industry officials say the full economic impact may emerge in the coming weeks as shipping routes remain uncertain and costs continue to rise.

Business leaders have also warned of broader risks to Pakistan’s economy if tensions escalate further, particularly if shipping through the strategically important Strait of Hormuz is disrupted. The waterway handles nearly 20 % of global oil shipments, making it critical for energy-importing countries like Pakistan.

Officials note that Pakistan imports a significant share of its oil and LNG from Gulf states including Saudi Arabia, UAE and Qatar, leaving the country exposed to regional instability.

According to experts, the country may need alternative supply routes to shield industries from prolonged disruptions.