The Chief Executive Officer (CEO) of Dawlance Umar Ahsan Khan on Wednesday told the Senate Standing Committee on Finance that the company is losing to the tune of Rs. 500 million every month due to non-opening letters of credit (LCs).
The committee chaired by Senator Saleem Mandviwala was told that due to the non-opening of LCs the company, one of Pakistan’s major household appliances makers, has so far sacked 1,000 employees.
The Dawlance CEO further told the committee that if LCs aren’t opened the company will be forced to fire a further 2,000 employees. Khan mentioned that in September of the current year, only 38 percent of the company’s LCs were opened, and the situation was no different in October.
Khan mentioned that a Turkish company has an investment of $590 million in Dawlance. He added that in Bangladesh investors are facilitated in every possible way for opening such factories and if the situation doesn’t change foreign investors will shift their capital to other countries.