On Wednesday, Umar Ahsan Khan, the CEO of Dawlance, testified before the Senate Standing Committee on Finance that the firm loses $500 million per month as a result of letters of credit that don’t open (LCs).
One of the largest home appliance producers in Pakistan briefed the committee chaired by Senator Saleem Mandviwala that 1,000 workers had already been let off as a result of the LCs not being opened.
The Dawlance CEO also warned the committee that the firm would have to let go of another 2,000 people if LCs weren’t opened. Only 38% of the company’s LCs opened in September of the current year, according to Khan. Additionally, nothing changed in October.
Khan brought up a $590 million investment in Dawlance by a Turkish firm. If the situation does not change, he said, international investors would shift their capital to other countries. Bangladesh also gives investors every chance to set up these firms.
Dawlance loses half billion rupees every month, due to buy-in cut
Dawlance is the top producer of cutting-edge home appliances in Pakistan and a fully-owned subsidiary of Arcelik, the second-largest manufacturer in Europe with headquarters in Turkey.
Dawlance expressed his congratulations to the Turkish nationals on the occasion of the 99th Turkish Republic Day, which honours the friendship between Pakistan and Turkey.
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