The Chief Executive Officer (CEO) of Dawlance Umar Ahsan Khan on Wednesday told the Senate Standing Committee on Finance that the company is losing to the tune of Rs. 500 million every month due to non-opening letters of credit (LCs).
The committee chaired by Senator Saleem Mandviwala was told that due to the non-opening of LCs the company, one of Pakistan’s major household appliances makers, has so far sacked 1,000 employees.
The Dawlance CEO further told the committee that if LCs aren’t opened the company will be forced to fire a further 2,000 employees. Khan mentioned that in September of the current year, only 38 percent of the company’s LCs were opened, and the situation was no different in October.
Khan mentioned that a Turkish company has an investment of $590 million in Dawlance. He added that in Bangladesh investors are facilitated in every possible way for opening such factories and if the situation doesn’t change foreign investors will shift their capital to other countries.
Propakistani is Good informative
Decades of presence in Pakistan and such big companies have still not started local production. Most companies in Pakistan are just glorified traders who purchase items from foreign countries in dollars, sell the items to customers here and taker their commission and become billionaires in the process.
Dollar loan is taken at the expense of common man and then these large companies do business on these borrowed dollar and make billions in the process, what part about this business looks morally correct, or even sustainable in the long run?
just think about the thousands of people who are employed in this process how many are loosing jobs. May Allah help us all in this tough position.
political instability is the main cause root….
Why the Company did not start production in Pakistan, and relied on imports.
With such a huge investment from foreign company Dowlance can easily start production timely.