The Salt Manufacturers Association of Pakistan (SMAP) today issued an urgent appeal to the government to address the escalating crisis in the salt industry, sparked by the recent implementation of the Truck Load Policy on highways.
Despite the government’s initiative to align with international business standards and elevate the country’s economic standing, the unintended consequences of the Truck Load Policy have dealt a severe blow to salt exporters. Far from improving, logistics costs have surged, exacerbating the challenges faced by the industry.
SMAP Acting Chairman Qasim Yaqoob Paracha said, “The implementation of the Truck Load Policy has significantly reduced the lifting capacity of trucks by 40% on major routes in Pakistan. This not only amplifies freight costs for salt exporters but also causes a tenfold increase in fuel expenses.”
Paracha added that the additional burden of heightened logistics expenses is proving unbearable for salt exporters, who are already struggling under the weight of increased utilities and labor costs driven by inflation. As a result, numerous small and medium-sized enterprises (SMEs) have been forced to exit the salt business, and others are contemplating a similar move. The potential loss of an estimated 10 million jobs threatens to cripple not only the salt industry but also casts a shadow on the broader Pakistani economy.
The Truck Load Policy also poses a significant threat to the competitiveness of Pakistani salt products in the international market. The resulting spike in finished salt product costs undermines the industry’s ability to compete globally, potentially leading to a decline in exports.
“The government must take immediate and decisive action to address this crisis,” Paracha said. “The salt industry is a vital part of the Pakistani economy, and we cannot afford to lose it.”
The salt sector plays a vital role in Pakistan’s economy, providing employment for millions and contributing billions of rupees in annual revenue. Immediate government action is imperative to shield this essential industry from the harmful repercussions of the Truck Load Policy. SMAP urges the government to consider the measures to alleviate the burden on the salt industry immediately.