Amid the downfall in the auto sector of the country, the related companies have fired thousands of daily wage workers since the last few months. Pakistan Association of Automobile Parts and Accessories Manufacturer (Paapam) Chairman Captain (Retd.) Mohammad Akram said that 400 companies around the country had laid off almost 40,000 employees due to the massive decline in automobile sales. He further added that the layoffs would continue if the market situation does not improve soon.
He added that another major reason for the downsizing is that the local car manufacturers have low levels of localization and hence the upset in the rupee-dollar exchange rate, drastically increased the car prices, which slowly moved out of the reach of general public. He added that companies were closing down the second shift and the overtime duties due to the decreased demand for automobiles. He added that many vendors are not able to pay wages to their workforce due to lack of availability of work.
However, the Indus Motor Company has not fired any employee and has announced that there would be no layoffs. The officials of the company said that the exchange rate had deteriorated almost 30% in the last 12 months and the company would bear the extra costs but won’t layoff any worker. Toyota had to shut down its plants for the last 15 days of September due to low sales of cars and has observed almost a 50% decline in its sales.