ISLAMABAD: Security lockdowns in Islamabad ahead of a possible second round of the United States-Iran talks has taken a hit on businesses, stakeholders said this week, estimating financial losses running in “billions of rupees.”
Authorities in Islamabad sealed the city’s ‘Red Zone,’ home to key government buildings and foreign missions, while several other connecting roads and highways, that are used to transport diplomats, have witnessed sporadic closures.
The restrictions left businesses, mainly in Islamabad’s ‘Blue Area’ business hub, without customers and prompted corporate offices to instruct their employees to work remotely as Pakistan’s mediation efforts once again gathered pace this week.
The Islamabad Chamber of Commerce and Industry (ICCI) estimates the losses from business closures, restriction on the entry of goods transport and others in “billions of rupees,” though the government allowed the supply of essential items late Friday.
“Usually, the trade, business here is so heavy that it’s hard to find a place to park a car,” Imran Bukhari, a traders’ representative in Blue Area, told Arab News on Friday.
“But since the lockdown started... business here has decreased by at least 70 percent.”
The current, more stringent cordons were established to ensure fool proof security for international delegations, following an extension in US-Iran ceasefire on Wednesday.
Iranian Foreign Minister Abbas Araghchi led a delegation to Islamabad late Friday, while the White House said President Donald Trump would be sending his envoys Steve Witkoff and Jared Kushner to Pakistan to meet with Iranian officials, though Tehran has ruled out any direct meetings with US officials.
The impact of security measures for the high-stakes talks spans the entirety of the capital’s commercial ecosystem, according to traders.
They said raw materials, such as wheat for flour mills, were stuck at the city’s entry points, while the fruit and vegetable market had suspended operations as trucks carrying perishable goods were stranded on the city’s outskirts.
“Goods worth crores of rupees are stuck in trucks and have perished,” Bukhari told Arab News.
Occupants at hotels, hostels and guesthouses were asked to vacate as part of security protocols or due to a lack of access in various areas. Small shopkeepers in parts of Islamabad reported a near-total absence of customers deterred by police checkpoints and massive traffic detours.
Beyond the immediate loss of trade, the closure of schools and restricted business hours, now capped at 8pm for most businesses, have brought daily life to a standstill.
Pakistan, which has positioned itself as a key intermediary between the US and Iran, hosted the first round of talks on April 11-12, which failed to yield a breakthrough. Islamabad witnessed similar measures during the first round of negotiations.
While there has been no consolidated data, the Islamabad Chamber of Commerce and Industry said the losses over the last two weeks have been “staggering.”
Speaking to Arab News, ICCI President Sardar Tahir Mehmood said though the financial pain is “acute,” the business community views the mediation as a “national obligation.”
“Naturally, we are facing losses worth billions of rupees, and the government is also losing revenue and struggling to meet its targets,” Mehmood said. “But the cause for which these negotiations are taking place is much greater than the cost.
Therefore, we stand with our government.”
