Car Companies Fire Over 250,000 Workers in Pakistan

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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 crisis.

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 halts.

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 crisis.


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 halts.

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 scenarios 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.

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