Business

Pakistan’s Textile Industry Faces New Export Risks After Iran-Israel Strikes

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Rising tensions in the Middle East are once again sending ripples through Pakistan’s textile industry. The All Pakistan Textile Mills Association (APTMA) has warned that recent conflicts in the region are causing uncertainty in energy and shipping costs, directly affecting export margins. With oil, gas, and freight prices fluctuating, Pakistan’s export-led economy faces renewed challenges to stay competitive.

The alert comes as Israel recently launched airstrikes on Tehran, prompting missile retaliations from Iran. These attacks have already damaged at least three tankers near the Gulf coast and tragically claimed one seafarer’s life. Iran has also closed navigation through the strategic Strait of Hormuz, a key route for global oil shipments.

APTMA emphasized that Pakistan’s textile sector is highly sensitive to price changes. Even small hikes in fuel, RLNG (re-gasified liquefied natural gas), freight, or insurance costs can significantly reduce export profits. The industry is already navigating high domestic input costs, making stable energy pricing and policy support more critical than ever.

While global developments remain outside the country’s control, APTMA stressed that domestic policies and energy pricing are firmly within it. The association said predictable and competitive industrial energy tariffs must remain a national priority to protect exports and preserve jobs.

The textile sector contributes a major share to Pakistan’s exports and employment. Any prolonged uncertainty in energy and shipping markets could have a domino effect, affecting not only profits but also workers’ livelihoods and the broader economy.