Layoffs Hit Pakistan: Massive Dip in Sales Leads To Thousands of Job Cuts in Auto Industry, Says Report
According to the media reports, the sale of passenger vehicles is on a steeper decline, and the industry has witnessed a massive 70% dip in sales. This has resulted in thousands of employees being fired in recent months.
Mumbai, May 23: Pakistan is reeling under an extreme economic crisis due to years of financial mismanagement and political instability. The crisis has not spared the auto industry in Pakistan. According to the media reports, the sale of passenger vehicles is on a steeper decline, and the industry has witnessed a massive 70% dip in sales. This has resulted in thousands of employees being fired in recent months.
According to one report published by Arab News, the reason behind the auto industry layoff is mostly due to a government ban on the import of raw materials. As per the Hindustan Times, the number of units sold last month plunged to 2,844 from 18,626 in April 2022. The overall sales in the automotive sector have drastically come down as demand for vehicles like buses, trucks and tractors dipped to a new low. Disney Layoffs Continue! Entertainment Giant Starts Its Third Round of Job Cuts, Over 2,500 Employees To Lose Jobs.
In April, South Asian country hit its highest-ever level of inflation at 36.42 per cent. Pakistan’s sales hitting almost rock-bottom paints a gloomy picture for the economy as well as local manufacturers leading to auto industry layoffs. Nuance Layoffs: Microsoft’s Healthcare AI Subsidiary Cutting Jobs To Align Business.
Pakistan is currently cornered with an unprecedented economic challenge as it grapples with a severe financial crisis. The country's foreign exchange reserves, held by the central bank, have plummeted to $4 billion, a level that barely provides sufficient coverage for three weeks of imports. Additionally, the national currency has experienced a significant decline, reaching historic lows against the US dollar.
(The above story first appeared on LatestLY on May 23, 2023 06:13 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).