Pak Suzuki Announces Plant Shutdown Yet Again

It’s another day and another announcement of Non-Production Days (NPDs) by the largest auto assembler in Pakistan. In a notice sent to the Pakistan Stock Exchange (PSX), Pak Suzuki has announced that it will halt its assembly operations from 13th February to 17th February 2023, because of inventory shortage due to the import restrictions imposed by the State Bank of Pakistan (SBP).

This is the 4th NPD schedule for Pak Suzuki in 2023 and the 14th since August 2022 taking the total number of NPDs beyond 45. The company’s motorcycle plant, however, will remain operational according to the notice.

Suzuki Notice

Although SBP announced the withdrawal of restrictions on imports effective from 2nd January 2023, but despite the removal of the restrictions, it isn’t smooth sailing for all importers. With foreign reserves hitting an all-time low & the Dollar reaching a record high against Pak Rupee, the SBP is yet to give a green signal to the non-essential imports which include automobiles & their related parts.

In addition, auto parts manufacturers are also unable to import the requisite components which are hampering the local assembly processes. But even when the production operations are at a halt, local auto assemblers are giving successive pushes to the prices of cars in tandem with the depreciation of the local currency. Car prices have reached an alarmingly high level in recent months which has also put a negative impact on the sales of locally assembled vehicles.

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