KARACHI: Pak Suzuki Motor Company (PSMC), one of the country’s largest car manufacturers, has once again extended its shutdown till January 20 due to inventory shortage.
Since the beginning of the new year, the production activities of the automobile company have been suspended for most of the days, blamed on the shortage of imported parts and accessories, as banks have issued letters of credit (LCs) amid the US dollar shortage, exchange rate crisis. ) are rejected or retired. And the country’s foreign reserves are rapidly depleting.
“Due to continued low inventory levels, the management of the company has decided to extend the shutdown of the automobile plant from January 16, 2023 to January 20, 2023,” PSMC said in an announcement to the Pakistan Stock Exchange (PSX).
However, the motorcycle plant will remain operational, he added.
This was the third consecutive announcement by the company to put a brake on its production activities in 2023. PSMC welcomed the New Year with a notice that it will observe non-production days from January 2 to January 6, affected by import restrictions. Non-issuance of letters of credit.
The Central Bank vide Circular No. 09 of 2022 dated May 20, 2022 had introduced a procedure for prior approval of imports under HS Code 8703 category (including Total Knockout-CKDs), the company then listed on the PSX. said in a written note.
Last week, PSMC again informed that it will keep the automobile plant closed from January 9 to January 13, due to which import of CKD kits has been banned.
Import barriers have continued to affect the auto industry in recent months, which is heavily dependent on imported parts and accessories.
According to data released by the Pakistan Automotive Manufacturers Association (PAMA), passenger car sales fell 44 percent to 13,768 units in December 2021 from a year earlier, compared to 24,471 units in December 2021.
It added that Pak Suzuki reported a month-on-month decline of 8 percent to 11,342 units.
It may be noted that PSMC is engaged in assembling, progressive manufacturing and marketing of Suzuki cars, pickups, vans, 4x4s and motorcycles and related spare parts.
Millat Tractors will resume production.
Meanwhile, Millat Tractors Limited (MTL) is set to resume its production activities from January 16, it announced in a bourse filing on Friday.
The company was witnessing non-productive days due to low demand for tractors and cash flow constraints. Earlier, MTL had stopped work on Friday, December 16, 2022.
Due to the disastrous floods in the country last year, the demand for tractors has decreased. According to PAMA data, sales of tractors declined to 1,015 units from 4,476 units in December 2021.
