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Gulf exports fell $387m short as Iran war hit shippingPakistan
Commerce Secretary Jawad Paul told parliament the shortfall was concentrated in the first months of the conflict, with freight charges on the Karachi to Doha route rising several times over.
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Pakistan’s exports to the Gulf fell $387 million short between March and October this year, after the war between the United States and Iran threw shipping into disarray and pushed freight and insurance costs sharply higher. Commerce Secretary Jawad Paul gave the figure to the National Assembly’s Standing Committee on Commerce on Wednesday, drawing on commerce ministry numbers presented to the panel.
The shortfall was heavily concentrated in the opening months of the conflict. Exports to the six Gulf Cooperation Council states dropped by $316.9 million, or 32.3 percent, in March to June compared with the same period a year earlier. The slide then eased considerably: in July to October the decline narrowed to 6.4 percent, or $69.8 million, as exporters found ways to work around the disruption.
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Paul told the committee that the impact was visible as soon as the fighting began. The conflict, which started with American and Israeli strikes on Iran in February, disturbed cargo and energy movements through the Strait of Hormuz, the narrow sea passage between Iran and Oman. Ships faced delays, goods were held up, and the cost of moving cargo climbed steeply, hitting agricultural and industrial shipments alike.
Freight charges tell the story most starkly. The ministry said sending a 40-foot container from Karachi to Hamad port in Qatar, which used to cost between $1,300 and $1,900, rose to between $8,500 and $8,800 at the height of the disruption. For exporters of perishable goods such as meat, the delays and the soaring charges were especially damaging.
How the government responded
Officials told the committee that the government moved quickly once the scale of the problem became clear. An inter-ministerial committee was set up in March to coordinate the response between government departments and private businesses. Dedicated cargo flights were arranged, particularly for meat exports, and lower air freight rates were negotiated with Emirates, Gulf Air and Jazeera Airways. Port handling charges were cut by up to 60 percent, and cargo vessels were arranged to keep meat and other goods moving to Gulf markets.
Paul said Pakistani businesses had gradually adapted to the changed conditions, and trade with the Gulf states was slowly recovering. The Gulf bloc, made up of Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Bahrain and Oman, is one of the biggest buyers of Pakistani farm produce and textiles, and an important source of the country’s energy imports.
The briefing also covered the wider strain on Pakistan’s trade. Paul said total exports, including services, reached $40 billion in the 2025-26 fiscal year, with merchandise exports at about $32 billion. He added that the suspension of bilateral and transit trade with Afghanistan had cut exports by around $1 billion, a decision he defended on national security grounds. The committee also approved the Anti-Dumping Duties (Amendment) Bill, 2026, during the same sitting.
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