Pak Suzuki Motor Company (PSMC) on Friday announced extending the shutdown of its automobile plant from February 20 to February 21 as it deals with inventory shortage due to import restrictions.
“Due to continued shortage of inventory level, the management of the company has decided to extend the shutdown of automobile plant from February 20, 2023 to February 21, 2023,” read a notice sent to the Pakistan Stock Exchange (PSX).
The note added that its motorcycle plant will remain operational.
PMSC is the local assembler, manufacturer and marketer of Suzuki cars, pickups, vans, 4x4s and motorcycles as well as related spare parts. The Suzuki brand itself is from Japan.
Earlier this month, PSMC had announced the temporary shutdown of its plant from February 13 to 17, citing an inventory shortage back then as well.
PSMC had said at the time that the State Bank of Pakistan’s (SBP) mechanism for prior approval for imports “adversely impacted clearance of import consignment which resultantly affected the inventory levels”.
PSMC had also said it will suspend taking new bookings for its motorcycles starting January 20 for an indefinite period due to “import-based supply chain constraints and uncertain production possibilities”.
Bookings will resume as the situation becomes favourable to serve fresh customers, it said.
Pakistan’s auto industry, highly dependent on imports, has been caught in the midst of a crisis, as the SBP, after unabated rupee depreciation, imposed restrictions on the opening of Letters of Credit (LCs). Industries are facing hindrances in operations as the country’s reserves have depleted to a critical level.