Despite inflation, private sector is unable to increase salaries
\nIslamabad
\nChairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain said on Friday that despite the inflation, the private sector is unable to increase the salaries of their employees as required due to the increasing cost of doing business.
\nIncreased uncertainty and the rising cost of doing business have put the survival of many companies at risk, he said.
\nMian Zahid Hussain said that the country\u2019s production and exports have been steadily declining, bringing the GDP close to zero. Due to inflation, demand is also continuously decreasing, and due to the decreased production, thousands of private companies are facing surplus staff.
\nTalking to the business community, the veteran business leader said that now the majority of the companies have only the option of laying off the surplus staff and reducing the salaries for their survival, due to which the morale of the employees of these organisations is falling.
\nPolitical conditions, a constant increase in the price of everything, including electricity, gas, and petroleum products, and bank markups have brought economic activity to a standstill, so many companies have no option but to downsize to survive, he added.
\nMasses are paying heavy costs for all these developments with no relief in sight, he said, adding that manufacturers who are unable to reduce their business costs will not be able to withstand the financial pressure for long and will go bankrupt.
\nMian Zahid Hussain further said that many large manufacturers are not retrenching despite the losses as they will not be able to re-hire the laid-off skilled workers after the situation improves, which will put them at a disadvantage.
\nApart from this, some labour laws also prohibit downsizing. Private sector companies that lay off staff are not considered reasonable concerns, and talented people dislike working in such companies.
\nOn the other hand, almost all sectors do not like to employ people who have lost their jobs somewhere else because it is generally believed that they will be incompetent.
\nLack of communication between employer and employee also increases misunderstandings, which affect the business environment, he observed.
\nCompanies facing financial difficulties should strengthen their relationships with employees, take them into confidence about the current difficult situation, make them aware of their constraints, and only then make tough decisions, he advised.<\/p>\n","protected":false},"excerpt":{"rendered":"
Despite inflation, private sector is unable to increase salaries Islamabad Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain said on Friday that despite the inflation, the private sector is unable to increase the salaries of their employees as required […]<\/p>\n","protected":false},"author":2,"featured_media":127540,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[8860],"class_list":{"0":"post-348727","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-mian-zahid"},"yoast_head":"\n