Pakistan Economic Crisis: The industrialist of Pakistan has warned the government that if it is not successful in removing the ban on imports, then lakhs of people will become unemployed. Recently, the government of Pakistan has banned the import of all essential food and medicines until a lifeline bailout is agreed upon with the International Monetary Fund (IMF). At present, Pakistan is facing serious shortage of foreign exchange reserves.
steel, textiles and pharmaceuticals
At present, industries like steel, textile and pharmaceuticals are barely functioning in Pakistan. Thousands of factories in the country are on the verge of closure, due to which the threat of unemployment is looming large. The steel industry has warned of serious supply-chain disruptions due to the shortage of scrap metal. Scrap metal is that which is melted to make steel. Due to the decrease in scrap metal, the prices of such goods have reached record prices in the last few weeks.
Small factories have already closed
Wajid Bukhari, head of Pakistan's Large Scale Steel Producers Association, said that we directly supply goods to the production industry, which is connected to about 45 downstream industries. This is going to be completely disrupted. He said that small factories have already closed after the stock ran out, while some big plants are on the verge of closure.
About 150 million dollars (12 billion) of goods are imported every month. People of Iron Industries say that its operations are directly and indirectly affecting several million jobs. According to the latest data from the Central Bank, foreign exchange reserves have come down to just $ 2.9 billion, which is enough for less than three weeks of imports.
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