Pak Suzuki Motor Company (PSMC) on Monday said it has further extended the shutdown of its automobile production plant from August 29 to 31, citing import restrictions by the State Bank of Pakistan (SBP) that have "adversely impacted clearance of import consignments, which resultantly affected the inventory levels".
In a notice sent to the Pakistan Stock Exchange (PSX), PSMC said that the SBP has introduced a mechanism for prior approval for import under HS code 8703 category (including CKDs) vide circular No.09 of 2022 dated May 20, 2022.
“(These) restrictions had adversely impacted clearance of import consignment which resultantly affected the inventory levels,” said PSMC.
As a result, PSMC said it is facing a shortage of inventory level, thus the management of the company has decided to further extend the shutdown period of the automobile plant from August 29, 2022, to August 31, 2022.
Earlier this week, PSMC had notified the PSX that it will be suspending its automobile production from 22-26th August 2022 on account of a drop in inventory levels.
However, its motorcycle plant will remain operative, PSMC said on both occasions.
Pakistan's auto industry, highly dependent on imports, has been caught in the midst of an exchange-rate crisis, as the SBP, after the unabated rupee devaluation, imposed restrictions on the opening of Letters of Credit (LCs).
Back in July, the automakers sought intervention from the central bank for opening LCs for the import of CKD kits to avoid delays in car deliveries and further cost escalation.
Earlier this month, PSMC citing the recovery in the rupee's value against the US dollar announced to decrease the prices of its cars in the range of Rs75,000-199,000. It had earlier in August massively increased prices due to rupee depreciation.