Sindh Chief Minister Syed Murad Ali Shah said on Wednesday that the provincial government is close to finalising a deal to end the ongoing strike by goods transporters, which has paralysed supply chains across Karachi and interior Sindh since Monday. The strike, led by the All Sindh Goods Transport Association (ASGTA), entered its third day today, forcing markets to shut early and leaving commuters stranded as public transport remains off the roads.

The transporters’ main demand is a Rs 50,000 monthly subsidy per truck to offset rising fuel costs, along with a 15% reduction in diesel prices for commercial vehicles. They also seek immediate release of Rs 2 billion in pending fuel subsidies owed by the federal government to Sindh’s transport department. CM Shah, speaking at a press conference in Karachi, confirmed that negotiations with ASGTA leaders are in the final stages and a breakthrough is expected within 24 hours.

  • Strike duration: Since Monday, 10 June 2025
  • Key demand: Rs 50,000 monthly subsidy per truck
  • Second demand: 15% cut in diesel prices for commercial transport
  • Third demand: Release of Rs 2 billion in pending federal subsidies
  • Impacted areas: Karachi, Hyderabad, Sukkur, Larkana, Nawabshah
  • Government response: CM Shah says talks are ‘90% complete’

Why the strike started

The strike began after the federal government failed to deliver on promises made during a meeting on 28 May 2025, where it was agreed to provide fuel subsidies to transporters. Since then, diesel prices have risen by Rs 12 per litre in Sindh, pushing operational costs beyond sustainable levels for small operators. ASGTA president Muhammad Yousuf told reporters that without immediate relief, many transporters would be forced to sell their vehicles or shut down operations permanently.

The strike has already cost Karachi’s wholesale markets an estimated Rs 5 billion in lost trade over two days, according to the Karachi Chamber of Commerce & Industry (KCCI). Perishable goods like fruits and vegetables are rotting in trucks parked outside markets, while fuel stations in industrial areas report severe shortages as tankers remain stranded.

What the government is offering

CM Shah said the provincial cabinet has approved a one-time grant of Rs 1.5 billion to be distributed among transporters based on the number of vehicles registered. Additionally, the Sindh government has requested the federal Petroleum Division to immediately release Rs 2 billion in pending subsidies owed to Sindh under the National Finance Commission (NFC) award. The CM also hinted at a possible temporary reduction in sales tax on diesel for commercial vehicles, though no formal proposal has been announced.

However, ASGTA leaders have rejected the one-time grant, insisting on the monthly subsidy of Rs 50,000 per truck as agreed in principle during the May 28 meeting. They argue that a one-off payment will not address the chronic issue of fuel price volatility, which has seen diesel costs rise by over 40% in the past year.

What happens next

If a deal is reached, transporters have agreed to call off the strike within 6 hours of the announcement, said Yousuf. The government has set up a 24-hour control room at the Sindh Transport Department’s office in Karachi to monitor the situation. Meanwhile, the Karachi Police has deployed additional forces at key junctions to prevent road blockades, while the Pakistan Rangers have been asked to assist in maintaining order.

Residents in Karachi are already feeling the pinch. Daily wage workers in the city’s wholesale markets report losing Rs 1,500 to Rs 2,000 per day due to the strike, while small shopkeepers are struggling to restock inventory. A fruit vendor in Sadar area told Naya Pakistan that he had to buy tomatoes at Rs 150 per kg today—double the usual price—because supply trucks couldn’t reach the market.

What you should do

  • If you’re a transporter: Monitor official announcements from the Sindh Transport Department (www.transport.sindh.gov.pk) for updates on the subsidy distribution process.
  • If you’re a business owner: Contact your suppliers to confirm delivery schedules. Many wholesale markets in Karachi are operating on reduced hours.
  • If you’re a commuter: Use ride-hailing apps or carpooling services, as public transport remains disrupted. The Karachi Metro Bus is running limited services, but delays are expected.
  • If you’re affected by price hikes: Check the Federal Board of Revenue (FBR) website (www.fbr.gov.pk) for any relief measures on essential goods.

What to watch for

  • Thursday, 12 June 2025: Deadline set by ASGTA for the government to meet their demands before escalating protests.
  • Friday, 13 June 2025: Possible announcement of a final deal or further strike extensions.
  • Next week: Impact on food prices if the strike persists beyond Friday, especially for perishable items.

The standoff highlights the broader crisis facing Pakistan’s transport sector, where small operators—who make up over 80% of the country’s trucking industry—are being crushed between rising fuel costs and stagnant freight rates. With inflation already at 38%, any prolonged disruption could push more families into poverty, particularly in Sindh, where agriculture and trade are the backbone of the economy.

CM Shah’s optimism notwithstanding, the next 48 hours will determine whether Karachi’s supply chains can recover or if the strike will spiral into a wider economic crisis.