Pak Suzuki Motor Company (PSMC) announced on Wednesday that it will temporarily halt operations at its automobile plant from February 13th to 17th, due to an insufficient inventory.
The management of Pak Suzuki, the local assembler, manufacturer, and marketer of Suzuki vehicles and related spare parts, has informed the Pakistan Stock Exchange (PSX) that it will temporarily cease operations at its automobile plant from February 13th to 17th, 2023, due to an ongoing shortage of inventory.
The company’s motorcycle plant, however, will remain in operation. This decision follows a previous temporary shutdown of the automobile plant from January 2nd to 6th and January 16th to 20th, also due to inventory constraints.
PSMC has reported that the recent introduction of a prior approval mechanism for imports by the State Bank of Pakistan (SBP) has negatively impacted the clearance of its import consignments, leading to a shortage of inventory.
As a result, PSMC has suspended new bookings for its motorcycles starting January 20th, due to supply chain constraints and an uncertain production outlook. The company has stated that bookings will resume when the situation improves and it is able to serve fresh customers.
Pakistan’s auto industry, which heavily relies on imports, is facing a crisis as the SBP has imposed restrictions on the opening of Letters of Credit (LCs) due to the persistent depreciation of the rupee. The country’s depleted reserves have resulted in operational challenges for various industries.
