KARACHI: Everything could be better, but it looks opposite to the claims of the government as one after other factories are either closing their businesses or using the option of downsizing.

The government looks satisfied with the dollar arrangement for external debt servicing, but the economy needs to catch up on the domestic side.

In a notice to the Pakistan Stock Exchange on Friday, Pak Leather Crafts Ltd (PLCL), a manufacturer and exporter of leather goods, announced that it would downsize its operations and diversify to other businesses, given the challenging economic situation.

The company is engaged in leather tanning and manufacturing of leather garments. The company informed the shareholders that PLCL’s board has decided on an alternate option to dispose of the company’s assets located at Plot 18, Sector 7-A Korangi Industrial Area, Karachi.

The assets comprise leasehold land, building on leasehold land and plant and machinery.

“Further, simultaneously, an economical portion of the said assets be acquired from the prospective purchaser for the continuation of uninterrupted business/manufacturing activities of the company,” PLCL said.

“The decisions include but are not limited to downsizing the present operations, diversifying to other manufacturing lines of business, warehousing or supply chain management,” said the notice.

The cost of doing business has increased too much while the political uncertainty remains. On the economic side, the government expects 3 to 3.5 per cent growth, while the lending agencies believe it could be 2.8pc in FY25.

Published in Dawn, October 5th, 2024