- Company says automobile plant to remain closed till September 23
Pak Suzuki Motor Company (PSMC) said on Tuesday that it has extended the shutdown of its automobile production plant till September 23.
In its notice sent to the Pakistan Stock Exchange (PSX), PSMC cited import restrictions by the State Bank of Pakistan (SBP) that have "adversely impacted clearance of import consignment which resultantly affected the inventory levels", saying that this will result in plant-shutdown from September 12 to September 16.
It also stated that due to period maintenance, the plant will then be shut down from September 19 to September 23.
However, PSMC stated that its motorcycle plant will remain operational.
This is the fourth such notice by the automaker in a span of three weeks.
Last week, on September 2, PSMC notified that it will be extending its automobile production from September 8 to September 9.
On August 29, it had also notified the PSX of an extension in plant shutdown from August 29 to August 31 on account of a drop in inventory levels.
Timeline of events
July 28, 2022: PSMC rebuts media reports regarding plant shutdown, saying as of today, there is no plan for plant shutdown
August 16, 2022: PSMC announces shutdown of its production plant for automobile products from August 18 to 19
August 18, 2022: PSMC further extends shutdown from August 22 to 26
August 29, 2022: PSMC announces yet another extension of the shutdown period of its automobile products from August 29 to 31
September 2, 2022: PSMC further extends shutdown period of its automobile products from September 08 to 09
September 6, 2022: PSMC says automobile plant to remain shut from September 12 to September 16 due to inventory shortage, while periodic maintenance will cause the plant to also remain shut from September 19 to September 23
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.