Pakistan’s auto industry is at risk due to the lack of dollars and import restrictions. Pakistani industry has stalled and the future does not look bright.
The former president of the Automobile Parts Manufacturers Association (PAMA), Mashhood Khan, said that due to the temporary shutdown by the car manufacturers, the demand has almost reduced to almost zero. Since the beginning of this month, the carmaker has been working only two days a week. He stated that the situation does not bode well for the future and that both traders and industrialists are extremely worried.
He also added that this decline was mainly due to the lack of dollars and the unavailability of imported goods. The automobile industry, including the auto parts sector, has taken a huge hit due to the final demand rate. This issue has forced companies to work only a few days out of the week.
According to Mashhood Khan, this vicious cycle of lack of demand and supply started in July 2022. He said that when import restrictions were imposed last year, 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.
The decline in the production of the automobile industry
This decline in automotive production was bad news for the entire country. The new figures are heartbreaking and illustrate the decline of the industry. New production numbers are dropping fast and you can find them here!
What are your thoughts on this matter? Do you think production will resume 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!