The automobile sector in the country has been on a decline for many months now. The industry has laid off thousands of workers due to lack of business and increased operations costs. The decline in the auto industry has put their local suppliers/vendors in trouble as well. There are thousands of workers who are indirectly linked to the auto industry, where some supply parts and accessories while others offer different services.
Former Chairman Pakistan Automotive Parts and Accessories Manufacturers (Paapam) said that the price of cars had recently skyrocketed due to different taxes imposed on imports and other such taxes and duties, which has led to a near shutdown of the auto industry. He said that the daily wage workers on the vendor industry are being laid off by the thousands.
There are currently around 350 vendors in the country who supply different engineering and other services to the auto industry who are being affected. Estimates suggest that there are around 1.5 million workers in the vendor industry and their jobs are under great risk due to the fall of the automobile sales.
Chairman (Paapam) Mr. Muhammad Ashraf Shaikh added that the cost of doing business has increased greatly, which has led to this situation. He added that most of the increased costs are being borne by the vendor’s industry who are working at lesser profits. He added that if the situation continues like this, it could lead to the shutdown of many vendors, which would sharply raise the unemployment rate in the country.