The Pakistan auto industry is in jeopardy due to the shortage of dollars and restrictions on imports. The Pakistani industry has come to a standstill, and the future doesn’t look bright either.
Former chairman of the Auto Parts Manufacturers Association (PAMA), Mashhood Khan, said that due to the temporary closure by the auto manufactures, the demand has almost scaled back to near zero. Since the beginning of this month, the auto industry has only worked two days per week. He stated that the situation does not bode well for the future and that both traders and industrialists are extremely concerned.
He further added that this downfall is primarily due to the shortage of dollars and the non-availability of imported goods. The auto industry, including the auto parts sector, has taken a huge hit due to the dying demand rate. This issue has forced the companies to work only a couple of days during the whole week.
According to Mashhood Khan, this vicious cycle of shortage in demand and supply started back in July 2022. He said that when the import restrictions were imposed last year, the car manufacturers started shutting down their operations. This, in turn, led to a decrease in demand and, consequently, a decrease in supply.
“But now the situation has worsened in January 2023,” he added.
Decline in Auto Industry Output
This decline in the automobile industry’s output has been bad news for the whole country. The new numbers are heartbreaking and depict the fall of the industry. The new numbers of the output are falling rapidly, and you can find them here!
What are your thoughts on this issue? Do you think the production will resume anytime soon and Pakistan’s economy will eventually recover? Or is this the end of the industry? Share your thoughts with us in the comments below!
