The company had requested so many times to the government and central bank to discuss with auto industry for resolving this issue on urgent basis, but till now, there was no reply on this request.
KARACHI: The government’s police to save the US dollar in Pakistan have forced several industrial production units to shut down their plants. After Indus Motors Company (Toyota), Pakistan Suzuki Company Limited (PSMA) has also announced Monday to shut down its production plant for five days (from 2nd January to 6 January 2023).
The spokesman of the company Shafiq Ahmed Sheikh said, “It is very critical time for Pak Suzuki due to import restrictions of CKD and other parts from State Bank.” “State Bank did not give us any future plan how much these restrictions will continue,” he added.
The spokesman said that detention, demurrages and kibor+3 per cent interest rate were really hurting auto industry.” Our dealers and vendors are also very disturbed due to the halted sale and production, he claimed.
He said that the company had requested so many times to the government and the central bank to discuss with auto industry for resolving this issue on urgent basis, but till now, there was no reply on this request.
Toyota and PSMC have stopped manufacturing of all kind of vehicles including motorcycles in Pakistan due to the shortage of inventory level following a restriction on the import of auto parts.
PSMC, in a notice sent to the Pakistan Stock Exchange (PSX), said that the State Bank 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”.
“Restrictions had adversely impacted clearance of import consignment which resultantly affected the inventory levels,” the notice added.
It should be noted that PSMC is engaged in the assembling, progressive manufacturing and marketing of Suzuki cars, pickups, vans, 4x4s and motorcycles and related spare parts.
The local auto industry is highly dependent on imports and is facing severe difficulties in the midst of an exchange-rate crisis, as the central bank imposed restrictions on the opening of letters of credit (LCs) following a severe liquidity crunch.
On Friday, the management of Baluchistan Wheels Limited (BWHL) announced to prolong its closure of production activities till December 30 due to depressed demand for autos in the market.
Earlier this month, Indus Motor Company (IMC) also announced that it will completely shut down its production plant from December 20 to December 30, citing its struggle with delays pertaining to approval for imports.
Moreover, Millat Tractors Limited also announced the closure of its production on Fridays citing a decline in demand for tractors in the country.