Pakistan Facing Risk Of Fresh 8 Million Unemployment After Import Restrictions Amid Ongoing Economic Crisis

Pakistan Debt Crisis: The troubles of the neighboring country Pakistan are not taking the name of abatement. One crisis that is already going on does not end when another one starts. Pakistan, which is under huge debt, has been facing economic crisis for a long time. The neighboring country has also taken many measures to overcome this, but till now success has not been achieved. On the other hand, there is a possibility of huge unemployment problem in front of Pakistan.

import ban effect

According to a recent news of Pakistan’s local newspaper Dawn, the decision to ban imports to reduce the economic crisis may backfire. It has been expressed apprehension in the report that this step taken to control the trade deficit is not only adversely affecting the economy, but due to the ban on imports, the risk of unemployment of lakhs of people is now looming large.

Economists are claiming this

In the report of Dawn, eminent economist Hafiz-e-Pasha says that by the end of 2022-23, the number of unemployed people in Pakistan may increase by 20 to 80 lakhs. Pakistan’s labor market is currently around 75.3 million people. Pasha says that there is a possibility of the unemployment rate going beyond 10 percent in this huge labor market, and if this happens, the unemployment rate will be in double digits for the first time.

The newspaper made such a comment

According to the newspaper, more companies than ever are now either shutting down or downsizing their operations and the main reason for this is the shortage of imported raw products. Dozens of companies have given notice to stop production during the recent months. Banning imports to improve trade balance is just like chopping off one’s nose to save one’s face.

increasing trouble due to

According to the news, all the production units of Dolens, a private company in Pakistan, are closed from the beginning of 2023. The company says that it started having problems related to imports since May last year. The newspaper also claimed that due to the attitude of bankers and officials, companies are facing more difficulties in importing, as the Central Bank of Pakistan has allowed imports to some extent.