Pakistan’s economy has continued to face hardships as two more industrial units announced that they would observe a partial shutdown in the face of thin demand for textiles and automobiles. The notification suggests that global economic slowdown and recession in Europe are taking their toll on Pakistan’s textile businesses. “Due to reduction in production volumes of our major customers, the company will be observing partial shutdown during the month of October 2023,” an Agriauto notification read. AHL Research auto analyst Muhammad Abrar Polani said as consumer affordability worsened due to a tough economic environment, the demand for automobiles shrank, resulting in a trickle-down impact on the demand for auto parts. Higher interest rates have also reduced the demand for auto financing, causing a drop in auto sales.
Source: The Express Tribune October 03, 2023 19:02 UTC