Massive increase in prices of petroleum products has led to a significant fall in demand for auto rickshaws. During the month of July 2022, Sazgar Engineering Works sold only 259 auto rickshaws- 85 percent less than the 1,797 units the company sold in the preceding month.
Sazgar Engineering Works Limited sold 259 Auto Rickshaws during the month of July 2022, which is around 85% less than the 1,797 units the company sold the Month before. Showing huge slowdown in the economy after budget of FY2023.
— Economy of Pakistan (@Pakistanomy) August 20, 2022
Sazgar Engineering is one of the largest domestic rickshaw manufacturers in Pakistan and has been incorporated since 1991 with plants located in Lahore. Aside from the manufacturing of auto rickshaws, Sazgar also manufactures and sells tractor wheel rims and home appliances.
Rickshaw used to be an affordable form of transport for most people in Pakistan as well as a decent start up especially for uneducated men in the society.
However, rapidly changed economic conditions in last couple of months have reversed the perceptions about this form of transport. Rickshaw remained affordable neither for passengers nor for drivers due to increased fares, fuel, and vehicle prices.
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Massive increase in unemployment is a major damaging consequence of all the harsh economic events that took place in the country. In June, some rickshaw drivers of Nawabshah staged a protest against the recent hike in fuel prices and set their vehicles on fire. As reported by media, “today, we are blazing our vehicles but if things go on like this, we would be committing suicide with our children,” the protesters maintained.
Unemployment and crime rate in Pakistan
It has been found by the researchers that there is a positive relationship between crime rates and unemployment rate in Pakistan. Higher unemployment diminishes the rate of return of legal activities, and is more likely to increase the return of illegal activities.
It can be observed currently that street crimes are at a rise as skyrocketing inflation and unemployment have forced the most vulnerable segment of the society to adopt illegal means for their sustenance.
In order to reduce the crime rate, governments and policy makers should focus on economic development rather than crime-fighting methods, such as conviction and jail time.
Moreover, tough economic conditions have snatched a decent way of earning for the uneducated segment of our society that is in dire need of state support. Providing nominal amounts to them for time being cannot prove to be a sustaining way of supporting them. They should be provided with employment opportunities or at least their existing opportunities should not be taken away by making the conditions harder.