KARACHI: Despite hopes of economic recovery following the IMF’s $7 billion bailout package, several industrial sectors are either shutting down units or reducing production due to the soaring costs of power and gas, which have hit production hard, leading to closures and job cuts in key industries.

However, stakeholders have expressed mixed views about the impact on employment. A drop in local cement sales and reduced steel production signal a slowdown in construction activity. Small textile units have already shut down, and medium-sized businesses on rented premises are fighting for survival.

Pakistan Business Council (PBC) CEO Ehsan A. Malik said that larger companies, with more resources, are better able to weather the temporary economic slowdown.

Sectors such as cement are affected by demand compression, following the tax burden in the FY25 budget, while others like steel are impacted by discrepancies in regional taxation, such as in erstwhile Fata and Pata, leaving manufacturers in the rest of the country unable to compete.

Despite hopes of recovery after IMF deal, several sectors are shutting down or reducing........

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