This is apropos a Business Recorder news item “Govt lays focus on auto sector to create jobs” carried by the newspaper yesterday. According to the government, the automotive sector is one of the major industrial sectors of the country and the government wanted to create job opportunities for the people as production of one car creates five job opportunities. The auto sector has the potential to drive the entire economy of the country and it has 7.81 percentage in Large-Scale Manufacturing.
The government seems to have taken the step with a view to creating new job opportunities in the country. I wish them success. It is, however, important to note that in India, for example, the auto industry was 49 percent of country’s manufacturing sector in 2019. It is also a fact that auto industry is in crisis with output falling for lack of demand. It is, therefore, imperative for our policymakers that they must not lose sight of the fact that auto industry is a very capital-intensive industry; it is not necessarily a big job spinner.
Azad Ahmed (Islamabad)
Copyright Business Recorder, 2021
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