Pak Suzuki Motor Company (PSMC) on Monday announced to shutdown automobiles and motorcycles plants from January 2 to 6 due to inventory shortage.
The State Bank of Pakistan (SBP) has instituted a procedure for prior permission for imports within the HS code 8703 category (including CKDs), according to a letter PSMC delivered to the Pakistan Stock Exchange (PSX) on May 20, 2022.
“Restrictions had adversely impacted clearance of import consignment which resultantly affected the inventory levels.
“Therefore, due to shortage of inventory level, the management of the company has decided to shut down its plant for automobile as well as motorcycle for period from January 02, 2023 to January 06, 2023,” said PMSC, which is engaged in the assembling, progressive manufacturing and marketing of Suzuki cars, pickups, vans, 4x4s and motorcycles and related spare parts.
Pakistan’s auto industry, highly dependent on imports, has been caught in the midst of an exchange-rate crisis, as the SBP, after unabated rupee depreciation, imposed restrictions on the opening of Letters of Credit (LCs).
Earlier, the management of Baluchistan Wheels Limited (BWHL) also decided to temporarily close or stop production activity due to depressed demand for autos in the market.
Earlier this month, Indus Motor Company (IMC), the assembler of Toyota-brand automobiles in Pakistan, also announced that it will completely shut down its production plant from December 20 to December 30, citing its struggle with delays pertaining to approval for imports.
