Car firms fire over 250,000 workers in
20 February 2023
The auto industry of Pakistan is in dire
straits due to economic volatility and
import restrictions. Resultantly, car
companies have been observing intermittent
closures of their production facilities.
According to a recent report from Dawn, the
carmakers have laid off 250,000 to 300,000
employees due to production downsizing. It
further noted that the parts suppliers are
also among the prime casualties of this
Pak Suzuki Motor Company (PSMC) — the
biggest carmaker by production and sales
volume — has kept its production on hold for
40 days in the last seven months. Other
automakers are also operating in single
shifts and are observing periodic production
The report adds that Pakistan has faced a
40% decline in sales in the first seven
months of the current fiscal year (7M
FY2023). The carmakers foresee an even worse
situation in the next five to six months.
CEO of Indus Motor Company (IMC), Ali Asghar
Jamali stated that: It is hard to predict
future sales scenario as things are not
visible regarding the opening of fresh LCs
for parts and accessories. We do not know
what is going on.
IMC’s plant was closed for 53 days between
August 2022 and February 2023. In 7MFY23,
IMC’s sales dropped by 51% to 21,877 units.
“I think overall auto sales in FY23 will
fall by at least 50%, keeping in view the
current situation,” Jamali said.