The progress of the auto industry has come to a grinding halt due to a severe dollar shortage and import restrictions.
Mashhood Khan — former chairman of the Pakistan Association of Automotive Parts & Accessories Manufacturers (PAPAAM) — told 24NewsHD that the demand and supply have nearly reached zero due to rising prices and frequent factory shutdowns by auto manufacturers.
Since January 1, 2023, the auto industry has operated only two days a week on average. Khan stated that business owners and industrialists are tremendously concerned.
Khan stated that due to a lack of financial resources and imported items, industrial production has plummeted. This has also created a lack of demand, compelling carmakers to cut production. This has adversely impacted the auto sector, especially the local part makers.
Khan stated that trouble began in July 2022, when automakers began sporadically observing non-production days (NPD). From July through December 2022, the auto manufacturers only worked four days per week due to low demand. “But now the situation has worsened in January 2023,” he added.
Khan stated that the escalating inflation has also taken away the livelihoods of many auto-sector workers. The current situation does not bode well for the future of the auto industry, he added.
