Pakistan

The KICT cargo backlog has quietly turned into one of the most disruptive challenges facing Pakistan’s trade and industrial ecosystem. With nearly half of all containers stuck daily at Karachi International Container Terminal (KICT), supply chains are buckling under pressure, costs are rising, and confidence among importers and manufacturers is rapidly eroding. Read More: https://theboardroompk.com/japan-tire-industry-outlook-enters-a-cautious-phase/ The alarm has now been formally raised by Karachi Chamber of Commerce & Industry (KCCI) President Rehan Hanif, who warns that prolonged congestion at KICT is no longer a logistical inconvenience it is a direct threat to ease of doing business in Pakistan. Why the KICT Cargo Backlog Persists Despite Modern Infrastructure At the heart of the KICT cargo backlog lies a paradox: world-class infrastructure undermined by operational bottlenecks. KCCI points to an acute shortage of Customs examination staff as the primary reason containers pile up daily. Consignments flagged for examination require a minimum team of 25 customs officers supervised by senior officials, yet current staffing levels fall well short of this requirement. Frequent staff rotations further disrupt continuity, slowing down an already sluggish clearance process. In practical terms, this means containers that should clear within hours remain stuck for days sometimes longer adding demurrage costs and production delays. Afghan Transit Cargo Adds Pressure to KICT Cargo Backlog Another major contributor to the KICT cargo backlog is the accumulation of over 2,000 containers imported under Afghan Transit Trade, which remain stranded at the terminal. These containers occupy valuable terminal space, limiting capacity for regular imports meant for Pakistan’s domestic industry. The result is a compounding congestion effect that slows down the entire port ecosystem. High-Tech Scanners, Low-Speed Clearance Ironically, KICT is equipped with state-of-the-art container scanners worth millions of dollars, capable of scanning a container in under a minute. Yet clearance times tell a very different story. According to KCCI, the scanners are grossly underutilized due to: • Inadequate technical training• Poor understanding of scanner capabilities• Lack of live-stream monitoring• Insufficient supervisory staff This disconnect between technology and execution is turning a powerful efficiency tool into a missed opportunity further deepening the KICT cargo backlog. Industrial Raw Materials Still Waiting Despite Official Assurances During a meeting with the Chief Collector of Customs, KCCI was assured that containers carrying single-item consignments or industrial raw materials would be cleared on priority. In reality, these instructions remain largely unimplemented. Even straightforward industrial inputs critical for keeping factories running face unexplained delays. For manufacturers operating on tight production schedules, such delays translate into shutdown risks and lost export orders. Truck Tracking System Emerges as a New Bottleneck The mandatory installation of tracking devices on trucks, intended to improve security, has ironically added another layer to the KICT cargo backlog. Installing a tracker on a single vehicle takes four to five hours, leading to long queues, delayed cargo evacuation, and escalating logistics costs. Instead of facilitating smooth movement, the system has become a choke point demanding urgent review and streamlining. Miscellaneous Cargo and Structural Congestion at KICT KICT also handles a high volume of miscellaneous cargo, which requires unpacking, physical examination, and repacking a labor-intensive and time-consuming process. This structural reality, combined with staffing shortages, ensures that congestion remains a persistent feature rather than a temporary disruption. February 2026 Surge Could Worsen the KICT Cargo Backlog The situation is poised to worsen dramatically between 5th and 15th February 2026. Due to extended factory shutdowns in China for the Chinese New Year, importers have front-loaded shipments, resulting in a surge of consignments heading toward Karachi. At the same time, the Eid season traditionally brings an influx of consumer goods. Without immediate corrective measures, the KICT cargo backlog could spiral into: • Severe port congestion• Shortages of goods in local markets• Sharp price hikes• Financial losses for importers and terminal operators Urgent Call for Intervention to Resolve KICT Cargo Backlog KCCI President Rehan Hanif has urged the Federal Minister for Finance, Chairman FBR, and Member Customs Operations to step in immediately. Key demands include: • Adequate deployment of customs staff• Full utilization of scanning technology• Priority clearance for industrial raw materials• Rationalization of the truck tracking system Timely action, he stresses, is essential not just to protect trade and industry but to stabilize markets and shield consumers from artificial shortages and inflationary pressures.