Pakistan | After Toyota, Suzuki announces production plant closure
Pakistan's Suzuki Motor Company (PSMC) on Monday announced that its production plants in the country will be closed completely between January 2 and 6. Reportedly this is because of an inventory shortage following a restriction on the import of auto parts.
Geo News reports that the PSMC in a notice sent to the Pakistan Stock Exchange (PSX) said that the State Bank of Pakistan (SBP) has introduced a mechanism for prior approval for import under "HS code 8703 category (including completely knocked down - CKDs) vide circular No.09 of 2022 dated May 20, 2022."
The company which is engaged in the assembling, progressive manufacturing and marketing of Suzuki cars, pickups, vans, 4x4s and motorcycles and related spare parts said that "Restrictions had adversely impacted clearance of import consignment which resultantly affected the inventory levels."
PMSC added that "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."
This announcement as per ANI comes just weeks after Toyota's Pakistan assembler Indus Motor Company (IMC) announced that it will be completely shutting down its production plant between December 20 and 30. The company blamed delays pertaining to approval for imports for the move. In November, during a corporate briefing session, the company said that the country's central bank imposed import restrictions and the ongoing currency depreciation are denting Pakistan's auto sector.
As per the report, Pakistan's auto industry is heavily dependent on imports and is caught up in the midst of an exchange-rate crisis. On top of that restrictions on the opening of Letters of Credit (LCs) imposed by the State Bank of Pakistan (SBP) have added to the crisis.
Other companies like Baluchistan Wheels Limited (BWHL) have also announced that it will prolong its closure of production activities till December 30. Millat Tractors Limited too announced the closure of its production on Fridays citing a decline in demand for tractors in the country.
