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Pak Suzuki warns of plant shutdown in August
Suzuki Motors Co. Ltd. issued a warning on Thursday that it may close its manufacturing facility in Pakistan as a result of import limitations.
The auto manufacturer stated
that State Bank of Pakistan (SBP) had established a process for prior
authorization for imports under the HS Code 8703 category (including CKD) via
circular No. 09 of 2022 dated May 20, 2022 in a letter sent to Pakistan Stock
Exchange (PSX).
Restrictions have a negative
influence on the business's ability to clear import consignments from the
ports, which could lead to a shutdown of the facility soon, the company said,
adding that Pak Suzuki has stopped making reservations for its products as of
July 1, 2022.
The corporation went on to say
that it does not currently have plans to shut down the plant. The company's
production schedule and any non-production days, it added, "remain subject
on a number of external circumstances."
In order to address the current
difficulties, the company closely collaborates with the Pakistani government
and central bank while actively monitoring its operations and production.
Indus Motors Company, which makes
Toyota vehicles in Pakistan, released a statement on the subject a day earlier.
The IMC claimed that due to
persistent economic difficulties and other reasons outside the control of car
makers, the auto industry was experiencing hitherto unheard-of operational
hurdles.
The State Bank of Pakistan (SBP)
regulations surrounding previous LC approval for completely knocked-down (CKD)
imports, as well as ongoing financial volatility, have all had a significant
negative impact on the auto industry, according to the IMC.
The company stated clearly that
as of today (July 27, 2022), no plans have been made to shut down the entire
factory for longer than two weeks in the month of August 2022.
