Middle East crisis hits local industries; auto sector braces for impact |
Middle East crisis hits local industries
KARACHI: The ongoing Middle East crisis is beginning to affect local industries, while a Japanese auto assembler also fears supply disruptions in the arrival of imported parts and accessories as global routes are disrupted.
Agritech Ltd has announced it has shut down its urea plant until further notice due to a suspension in RLNG supply from March 4, 2026 by the gas utility company.
In a stock filing, the company stated that Sui Northern Gas Pipelines Ltd (SNGPL) has officially communicated regarding a “Potential Event of Force Majeure” declared by the LNG supplier.
This situation stems from the ongoing regional conflict in the Middle East, which has disrupted LNG production facilities and consequently impacted LNG supply in the country.
Urea plant shuts due to RLNG supply suspension; auto sector braces for impact
Urea plant shuts due to RLNG supply suspension; auto sector braces for impact
According to Topline Securities, Indus Motor Company (IMC), in a corporate briefing, anticipates disruptions and delays in imported parts due to the ongoing Middle East crisis. Logistical congestion, higher freight costs, and shipping delays are expected to challenge supply timelines.
However, a wider ripple effect may become apparent over the next month, emphasising the importance of effective crisis management, although some disruptions may still be unavoidable, the auto assembler said.
The company anticipates gradual growth in local vehicle demand driven by economic stability, consistent financing rates, and moderate........