Hinopak Motors Limited is the latest automaker in Pakistan to suspend assembly operations due to import restrictions imposed by the government. This was informed to the Pakistan Stock Exchange (PSX) in a notice, which reads:
“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. 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.”
Hinopak is a subsidiary of Hino Motors Limited Japan, which in turn is a subsidiary of Toyota Motors Corporation Japan.
Pakistan’s auto industry, which is heavily reliant on imports, has been caught in the midst of a severe crisis situation after the SBP imposed restrictions on the opening of LCs following relentless currency devaluation. The industry is experiencing operational difficulties while the country’s reserves remain alarmingly low. In addition to vehicle manufacturers including passenger cars & bus and truck makers, tractors and tire manufacturers are also observing non-production days.
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