Pakistan Economic Crisis: 10 lakh workers will get jobs in Pakistan, industries hit by the economic crisis

The heat of the economic crisis prevailing in Pakistan is slowly spreading to every part of the country. Now such apprehensions are being raised that many industries in Pakistan are going to lay off their employees. The retrenchment is likely to have a greater impact on the textile sector. According to news outlet The News International, Pakistan's textile exports declined by 14.8 percent.

Nasir Mansoor, general secretary of the National Trade Union Federation Pakistan (NTUF), expressed apprehension that around one million informal workers in Pakistan would become jobless. Most of these workers are related to the textile sector.

Cotton washed away in floods, problems in import too

Pakistan's exports in January 2023 were USD 1.3 billion while in January 2021 the exports were USD 1.5 billion. In this way, the exports in January this year are 2.5 percent less as compared to January 2021. Regarding the reasons for this decline, Mansoor says that at least 45 percent of the cotton crop was washed away in the floods of 2022. In such a situation, there was a shortage of raw materials.

On the other hand, due to the delay in opening LC (letter of credit), the garment manufacturing units could not even import raw materials. In a joint press conference organized by textile associations in January 2023, industry representatives also blamed government regulations, including delays in the opening of LCs, for this dire situation.

Thousands of employees will be laid off in the automobile industry

Meanwhile, the Association of Vehicle Components Manufacturers in Pakistan also reported that around 25,000-30,000 workers in the auto sector lost their jobs due to the continuous decline in sales. Economic experts in Pakistan say that currently, the economic sectors dependent on imports are likely to be affected the most.

Those industries which do not have to import raw materials are also facing a difficult situation. Companies that are not even laying off their employees are also refraining from new recruitment. Pakistan's unemployment rate is currently 6 percent.

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