KARACHI: Pak Suzuki Motor Company Limited (PSMCL) is shutting down its production plant from August 2022, due to the unavailability of CKDs and related raw material.
The clearance of consignment of CKDs and related raw material has stopped, following the restriction imposed by the State Bank of Pakistan (SBP) for prior approval for import under HS code 8703 category that compelled the PSMCL to go on non-production days (NPD) in August 2022.
Pak Suzuki warns of plant shutdown in August if import restrictions persist
Talking to the Business Recorder, Shafiq A. Shaikh, spokesman of PSMCL said that presently commercial banks were not opening the LCs and DP’s for automobile CKD. Therefore, the company has no other option but to shut down its production plant in August 2022, due to the unavailability of CKDs and related raw material.
He was of the view that the company would face serious difficulties, if the situation persisted in August 2022. Moreover, he said that the company was striving to deliver all vehicles, booked till June 2022.
Needless to mention, the SBP after the unabated rupee devaluation, has imposed restrictions on the opening of LC, disrupting the assembly lines of almost all auto assemblers, forcing them to go on NPD until the situation comes to normal.
Copyright Business Recorder, 2022
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