Page 25 - CMA Journal (Mar-Apr 2026)

Introduction m i g h t s t o p e n t i r e
manufacturing operations
Supply chains have developed into intricate, interconnected t h i s c o n c e n t r a t i o n
networks that support commerce, industry and economic increases susceptibility to
growth in today's international economy. Recent external shocks.
geopolitical shocks, however, have highlighted these
Freight cost volatility has
institutions' vulnerability and revealed system aws that
e m e r g e d a s a k e y
were previously underestimated. Global supply chains have
challenge in recent years,
been severely affected by events like pandemic COVID-19
uctuations in fuel prices,
and the Russia-Ukraine War which have stopped
shipping demand and
manufacturing, raised transportation costs and created
global trade conditions
widespread uncertainty in trade ows. These shocks have
lead to sharp increases in
shown how quickly localized crises can turn into worldwide Imtiaz Bashir, FCMA
transportation costs. For
economic disturbances. Senior Instructor of Commerce
i m p o r t - d e p e n d e n t Government Graduate College
Supply chain and logistics risks are a signi cant economies this directly of Commerce, Multan
macroeconomic concern for developing economies like translates into higher
Pakistan which mostly depend on imported energy, production costs and in ation. Additionally, infrastructure
industrial inputs and external trade routes. The effects of bottlenecks such as inefficient ports, outdated transport
external shocks are ampli ed by persistent vulnerabilities systems and lengthy customs procedures further exacerbate
such as poor logistics infrastructure, uctuating exchange logistics challenges reducing trade efficiency and increasing
rates and reliance on a few trading partners. Global supply costs.
chain disruption consequently results in imbalance in the
external sector, industrial slowdown and domestic in ation. Geopolitical Drivers of Supply Chain Disruptions
In the context of geopolitical shocks this essay explores the Recent geopolitical developments have signi cantly altered
nature of supply chain and logistics risks, assesses their the global supply chain landscape. Unprecedented
economic impact on Pakistan using current empirical data disruptions such as labor shortages, manufacturing closures
and suggests strategic policy solutions to improve resilience and limitations on foreign travel were brought on by the
and long-term economic stability. COVID-19 pandemic. The World Bank (2025) reports that
during the early stages of the epidemic, global trade
Understanding Supply Chain and Logistics Risks volumes drastically decreased underscoring the
vulnerability of tightly integrated supply chains.
The interrelated systems involved in the production and
distribution of goods including sourcing, manufacturing, Supply chain disruptions have been worse as a result of the
transportation and nal delivery are referred to as a supply Russia-Ukraine War especially in the markets for gas, food
chain. Transportation, warehousing, port operations and and fertilizers. Major wheat and energy exporters, Russia and
customs procedures are all part of logistics which is an Ukraine, have experienced severe supply constraints and
essential part of supply chain. Any disruption to one of these price volatility as a result of the con ict. By raising import
prices and escalating in ationary pressure, these disruptions
components could have signi cant economic repercussions.
have disproportionately impacted emerging economies,
Transportation disruption which can result from a pandemic, according to the International Monetary Fund (IMF, 2025).
geopolitical con icts or regulatory disruptions, delay
Global supply chains have also become more fragmented as
shipments increase lead time and raise operational costs for
a result of the US-China Trade War. Multinational rms have
businesses. Another signi cant issue is supplier concentration
been compelled by trade restrictions and tariffs to shift
risk, especially when nations rely heavily on a small number of supply chains and diversify their manufacturing, frequently
suppliers for necessities. Because a disturbance in one area
at greater expense.
ICMA’s Chartered Management Accountant, Mar-Apr 2026 23