Pakistanis love their chai. Be it the rich, living in palatial mansions in Defence or be in the truck drivers sitting at an illegal fuel pump in Turbat, the comfort that a cup of tea brings is unparalleled compared to any other beverage. So it is a sorry state of affairs when tea blending in Pakistan takes a hit.
From the manufacturing of medicinal tablets to motorcycles, the vehicle of choice for the lower-middle-income group, the decline in manufacturing shows the trials and tribulations of the average man who cannot afford necessities such as medicine, much less the blessed cool air of air conditioners amidst global warming.
On the one hand, manufacturers face demand destruction as inflation erodes buying power daily. On the other, the sector faces an extremely harsh economic environment where climbing interest rates eat away profits and blocked letters of credit pose roadblocks for imported raw materials.
Gas loadshedding has left the poor squabbling for crate boxes to burn as firewood and industrialists making ‘arrangements’ to secure adequate supply. It is no wonder that the production of many commonly consumed goods has witnessed a double-digit decline in recent months.
Note: Data for the quantum index of selected large-scale manufacturing items for July-Sept 2022, base year 2015-16. Source: Pakistan Bureau of Statistics via State Bank of Pakistan.
Published in Dawn, The Business and Finance Weekly, December 12th, 2022
