Manufacturing collapse, job losses threaten Pakistan’s economy: Senate committee told

ISLAMABAD: Pakistan People’s Party (PPP) Vice President Senator Sherry Rehman, on Wednesday raised concerns over rising unemployment and the mounting pressure on the manufacturing and corporate sectors during a session of the Senate Standing Committee on Finance.

Addressing the committee, Senator Rehman noted that while macroeconomic stability is being celebrated, the real challenge lies in job creation and economic growth. “Thousands of people are being laid off from the government sector, and the manufacturing sector is being squeezed just like private companies,” she said.

She highlighted that many manufacturers are leaving the country in search of better tax and energy conditions, warning that these are precisely the businesses that generate exports and create employment for Pakistan’s rapidly growing urban population. “Every year, three million people are entering the job market, yet unemployment is increasing at an alarming rate,” Rehman added.

The senator also criticised the continued reliance on super tax as a permanent revenue measure. “Super tax was a temporary solution. Using it as a source of permanent income is unfair. It is not right to make people pay two to three years of tax at the same time,” she said. Rehman also pointed out that the working class is being overburdened, while tax evaders continue to evade their responsibilities.

“It is no longer possible to milk the same tired cow over and over again. The focus should be on broadening the tax net and creating an environment where businesses can thrive and generate jobs,” she urged.

Senator Rehman’s remarks underscore growing concerns over economic sustainability, employment generation, and fair taxation policies, calling on the government to focus on measures that support both businesses and the workforce.