Page 26 - CMA Journal (Mar-Apr 2026)

Global trade networks now have additional inefficiencies as and after the pandemic due to an increase in global shipping
a result of this shift toward "deglobalization" or prices. In addition to causing in ation, higher freight costs
regionalization. make exports less competitive in global markets. Another
important factor is the volatility of exchange rates. The
Together, these geopolitical factors have raised market
depreciation of the Pakistani Rupee raises the prices of
uncertainty worldwide increasing supply chains'
imports especially necessities like machinery and petrol. The
vulnerability and unpredictability.
State Bank of Pakistan (SBP, 2025) claims that changes in
Table 1: Industries Affected by Supply Chain Disrup on Risks (In the Context of Middle East)

Pakistan's Supply Chain Vulnerabilities exchange rates continue to be a major cause of in ation and
volatility in the external sector.
Pakistan is especially vulnerable to interruptions in the
Lastly, Pakistan is vulnerable to uncontrollable geopolitical
global supply chain because of its economic structure. One
risks due to its reliance on Middle Eastern oil routes. The
of the main causes of vulnerability is the nation's over-
nation's energy supply and economic stability may suffer
reliance on imports. Petroleum goods, machinery and
rapid and serious repercussions from any disturbance in these
industrial raw materials continue to dominate imports,
areas, whether brought on by political unrest or con ict.
according to Pakistan Economic Survey (2025) rendering the
economy extremely vulnerable to changes in global prices.
Economic Impact on Pakistan
These vulnerabilities are made worse by limitations in the
Disruptions to supply chains and logistics have a substantial
logistics system. The majority of Pakistan's trade is handled
and complex effect on Pakistan's economy. In ation is one of
by major ports like Karachi Port and Port Qasim, although
the most noticeable consequences. Disruptions in the
they constantly struggle with issues including congestion,
supply chain raise the price of imported items, especially
capacity constraints and operational inefficiencies. Pakistan
food and fuel, which are vital parts of the consumption
routinely scores lower than its regional counterparts on the
basket. Pakistan's reliance on imports is re ected in the SBP
World Bank's Logistics Performance Index (LPI) a sign of
In ation Dynamics (2025) which states that global
structural aws in logistics effectiveness.
commodity prices have a signi cant impact on the country's
Pressure on freight costs has also increased recently.
in ationary forces.
Pakistan's import expense increased dramatically during
24 ICMA’s Chartered Management Accountant, Mar-Apr 2026