Hinopak Motors Limited (HINO) has become the latest casualty of the government’s import restrictions as the automaker shut down operations on a temporary basis.
Hinopak, which assembles and manufactures Hino buses and trucks, shared the development in a notice to the Pakistan Stock Exchange (PSX) on Tuesday.
“Considering the current economic situation of Pakistan, whereby the commercial banks have been advised by the State Bank of Pakistan (SBP) to prioritize/facilitate the imports to essential sectors only, which does not include the auto sector. Consequently, the company has been facing hurdles in opening of LCs for the import of CKDs and other raw materials,” read the notice.
“Accordingly, the company is not in a position to continue with its production activities and has to temporarily shut down its chassis assembly plant from March 24, 2023 to April 04, 2023,” it added.
Hinopak is a subsidiary of Hino Motors Limited Japan and the ultimate parent company is Toyota Motors Corporation Japan.
Pakistan’s auto industry, which is heavily dependent on imports, is in a precarious position due to the SBP imposed limitations on the opening of LCs amid country’s dwindling forex reserves.
On Monday, Ghandhara Tyre and Rubber Company Limited (GTYR), a manufacturer and trader of tyres and tubes for automobiles and motorcycles, announced to shut down the production.
Last week, Pak Suzuki Motor Company (PSMC) announced the shutdown of its motorcycle plant from March 20 to March 31 as it deals with an inventory shortage due to import restrictions.
