Following restrictions to import auto parts and the resultant decline in inventory level, Pak Sukuzi Motor Company (PSMC) Monday announced that its production plant will be closed completely for five days — from January 2 to 6.
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 said in a note to the Pakistan Stock Exchange (PSX).
“Restrictions had adversely impacted clearance of import consignment which resultantly affected the inventory levels.
"Therefore, due to shortage of inventory level, the management of the company has decided to shut down its plant for the automobile as well as a motorcycle for the period from January 2 to January 6, 2023,” PMSC said.
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 prolonging its closure of production activities till December 30 due to depressed demand for autos in the market.
Earlier this month, Indus Motor Company (IMC), the assembler of Toyota automobiles, 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.