Thursday June 01, 2023

Indus Motor suspends production

By Our Correspondent
March 25, 2023

KARACHI: Indus Motor Company Limited announced to keep its production plant completely shut for four days on Friday, attributing a shortage of raw materials on hurdles in opening of letters of credit (LCs).

The company will observe non-production days from March 24, 2023 to March 27, 2023, as it shared the development in a notice to the Pakistan Stock Exchange. “The company and its vendors continue to face hurdles on import of raw materials and receiving clearance of their consignments from commercial banks, on account of difficulties in opening of LCs for raw materials by banks. This has disrupted the supply chain of the company, and its vendors are unable to supply raw materials and components to the company,” the notice read.

“Accordingly, the company has insufficient inventory levels to maintain production, therefore the company in unable to continue its production activities,” it added. In view of the above, the company said it would completely shut down its production plant from March 24 to March 27 (both days inclusive). Imports curbs in recent months have forced a number of companies to observe non-production days multiple times.