High tax rates and rising operational costs are forcing Pakistan’s leading companies to cut jobs as economic pressures intensify. Major firms like Engro Corp and Amreli Steels have announced significant layoffs amid a challenging financial climate. Engro, a major conglomerate, has reduced headcount across its trading, logistics, and pesticides divisions, impacting over 100 employees. Amreli Steels has also laid off more than 300 staff and reduced its production capacity by 30%.

Pakistan’s economic woes, compounded by repeated IMF bailouts, continue to pressure industries. In the textiles sector, Aruj Industries and Naz Textiles have halted operations, while Indus Motor Company recently shut down its plant for five days due to inventory shortages.

These layoffs highlight Pakistan’s economic struggles, with high taxes discouraging business activity. The industrial sector contracted by 3.59% in the second quarter of 2023-24, exacerbating the country’s financial crisis. The Federal Board of Revenue’s (FBR) high tax policies have drawn criticism, pushing skilled professionals to seek opportunities abroad. Despite Finance Minister Muhammad Aurangzeb acknowledging the issue, no concrete solutions have been presented, fueling concerns about future fiscal policies.