AVN 48.21 Increased By ▲ 0.81 (1.71%)
BAFL 28.88 Increased By ▲ 0.28 (0.98%)
BOP 3.76 Decreased By ▼ -0.02 (-0.53%)
CNERGY 3.33 Increased By ▲ 0.16 (5.05%)
DFML 10.93 Decreased By ▼ -0.07 (-0.64%)
DGKC 52.81 Decreased By ▼ -0.88 (-1.64%)
EPCL 43.09 Increased By ▲ 0.40 (0.94%)
FCCL 12.43 Increased By ▲ 0.18 (1.47%)
FFL 6.02 Decreased By ▼ -0.01 (-0.17%)
FLYNG 5.97 Increased By ▲ 0.06 (1.02%)
GGL 10.34 Increased By ▲ 0.19 (1.87%)
HUBC 68.96 Decreased By ▼ -0.44 (-0.63%)
HUMNL 5.85 Increased By ▲ 0.05 (0.86%)
KAPCO 22.72 Increased By ▲ 0.57 (2.57%)
KEL 1.83 Increased By ▲ 0.03 (1.67%)
LOTCHEM 29.81 Increased By ▲ 0.89 (3.08%)
MLCF 28.70 No Change ▼ 0.00 (0%)
NETSOL 75.21 Increased By ▲ 1.11 (1.5%)
OGDC 78.47 Decreased By ▼ -0.04 (-0.05%)
PAEL 9.74 Increased By ▲ 0.42 (4.51%)
PIBTL 4.26 Decreased By ▼ -0.06 (-1.39%)
PPL 61.28 Decreased By ▼ -0.37 (-0.6%)
PRL 15.06 Increased By ▲ 0.70 (4.87%)
SILK 1.08 Decreased By ▼ -0.03 (-2.7%)
SNGP 42.62 Decreased By ▼ -0.61 (-1.41%)
TELE 6.95 Increased By ▲ 0.08 (1.16%)
TPLP 11.97 Increased By ▲ 0.03 (0.25%)
TRG 96.97 Increased By ▲ 1.52 (1.59%)
UNITY 13.49 Increased By ▲ 0.24 (1.81%)
WTL 1.15 No Change ▼ 0.00 (0%)
BR100 4,193 Increased By 27.2 (0.65%)
BR30 14,439 Increased By 36.2 (0.25%)
KSE100 41,923 Increased By 255.5 (0.61%)
KSE30 14,873 Increased By 74.3 (0.5%)
Follow us

Pakistan’s manufacturing sector is set for a rough ride, as dozens of companies have already announced either a temporary shutdown or rolling back of operations.

Since December alone, at least 14 listed companies have announced scaling back or shutting down operations citing varying reasons including an inability to obtain Letters of Credit (LCs), supply chain disruptions, inventory shortages. drop in demand and energy shortage.

A brokerage house already painted a grim picture of Pakistan’s economic growth this fiscal year with floods only adding to the bleak outlook.

Meanwhile, a market expert said the situation is expected to remain gloomy in the coming months, with negative growth expected in the industrial sector.

Among major companies, the auto sector seems to have been hit the hardest after Pak Suzuki Motor Company Limited (PSMC) , Indus Motor Company (INDU), Baluchistan Wheels Limited (BWHL) among others announced shutdown of operations.

“The automobile demand was already very low, as LCs were not opening, which dented booking orders,” Arsalan Siddiqui, Head of Research at Optimus Research, told Business Recorder.

“Due to this, auto companies lost orders. Moreover, there was also a demand slowdown due to high prices, thus a shutdown was the only feasible option,” he said.

Meanwhile, the country’s crucial textile sector, responsible for a majority of Pakistan’s exports, is also bearing the brunt of a global economic downturn, leading to a drop in sales.

“Overall demand is low internationally. Then there are domestic issues, including shortage of energy and difficulty in the procurement of cotton, due to flood devastation. All this is hampering production,” said Siddique

“This is a general phenomenon — tough times lay ahead for the textile sector.”

Since December, major textile firms including Nishat Chunian, Kohinoor Spinning Mills Limited, and Suraj Cotton Mills Limited have announced to limit their operations.

The expert was of the view that the resumption of the International Monetary Fund (IMF) programme is the only option left.

“We need to build reserves. This is the only way. The IMF support will ease import restrictions and improve stability in the currency market as well,” he said.

Facing the consequences of flood devastation, high inflation and policy measures, Pakistan’s economy is expected to witness economic contraction this fiscal year, said Ismail Iqbal Securities Limited (IISL) in its report titled ‘Pakistan Outlook 2023 No Easy Way Out’released earlier this week.

“We expect GDP growth at a negative 1% in FY23 (Govt target 5%), which would be on the back of a broad-based slowdown across all sectors,” it said.

The IMF programme is currently stalled at the level of the ninth review, with experts suggesting that Pakistan is reluctant to implement some of the lender’s conditions over their effect on political capital in a year when elections are scheduled to take place.


1000 characters
TimeToMovveOn Jan 04, 2023 10:48pm
Pakistan leaders (PTI or PDM) are busy commenting on what is going on in other countries, standing up for human rights issues around the world, sticking their neck out on the mosque issue. But fail to address the real priorities that need attention within the country. Their strategy is just hope.
thumb_up Recommended (0) reply Reply
Muhammad Kashif Jan 06, 2023 01:47pm
As a nation we have associated our economy with the loans and donations of the international financial institutions. We don't want to establish our economy without the pillars of foreign loans and donations.
thumb_up Recommended (0) reply Reply
Muhammad Ali Jan 07, 2023 10:48am
Ishaq Dar has no vision like his leader. He has no policy to save from default & hyper inflation. It looks as if they are put to driving seat to make sure total melt down of Industry & the State.
thumb_up Recommended (0) reply Reply

Bleak times ahead for Pakistan’s manufacturing sector

Rupee falls against US dollar in inter-bank, but gains in open market

Pakistan proposes inflation target of 21% in estimates for upcoming FY24 budget: report

Punjab govt challenges PTI leader Yasmin Rashid’s acquittal

Zille Shah case: LHC confirms Imran’s pre-arrest bail

CJP Bandial questions if govt has ‘utilised resources’ to trace those behind audio leaks

Shah Mahmood Qureshi released from jail on LHC’s order

PSX sustains gains, KSE-100 up 0.61%

Pro-agriculture budget expected by brokerage house

Oil falls as economic fears overshadow Saudi output cut

Flood-hit Pakistanis still waiting on promised rebuild