Pak Suzuki, the largest auto assembler in the country has announced that its production plant will be closed completely from 2nd to 6th January 2023. According to the company, the decision has been made due to a shortage of inventory level following the restrictions on the import of auto parts by the State Bank of Pakistan (SBP).
Related: 2023- Dark Clouds will Remain Looming on the Auto Sector
In a notice sent to the Pakistan Stock Exchange (PSX), Pak Suzuki said that 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 notification reads:
“Restrictions had adversely impacted clearance of import consignment which resultantly affected the inventory levels. Therefore, due to a shortage of inventory level, the management of the company has decided to shut down its plant for the automobiles as well as motorcycles for the period from January 2 to January 6, 2023.”
Pakistan’s auto industry, which is heavily dependent on imports, has been caught in the midst of an exchange-rate crisis, as the SBP, after unabated rupee depreciation & depleting foreign reserves, imposed restrictions on the opening of Letters of Credit (LCs).
Related: Indus Motors to Shut down Toyota Production for 11 Days
Earlier Indus Motor Company (IMC) the assemblers of Toyota cars in Pakistan announced that it will completely shut down its production plant from 20th to 30th December 2022, citing its struggle with delays pertaining to approval for imports. Last week the management of Baluchistan Wheels Limited (BWHL) also announced that it will prolong its closure of production activities till 30th December due to depressed demand for autos in the market.
A computer animation professional with over 23 years of industry experience having served in leading organizations, TV channels & production facilities in Pakistan. An avid car enthusiast and petrolhead with an affection to deliver quality content to help shape opinions. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com
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