Auto parts maker Agriauto announces partial plant shutdown in March

Agriauto Industries Limited, a manufacturer of auto components, announced it will partially shut down its plant during the month of March in a notice to the Pakistan Stock Exchange (PSX) on Thursday.

“Due to reduction in production volumes of our major customers, the company will be observing partial shutdown during the month of March 2023,” read the notice.

As per information available on the PSX, Agriauto Industries was incorporated in Pakistan on June 25, 1981, as a public limited company. The company is engaged in the manufacture and sale of components for automotive vehicles, motorcycles and agricultural tractors.

Its clients include Suzuki, Toyota and Atlas Honda, automakers that are struggling and have shut down plant operations on multiple occasions as the auto sector deals with inventory shortage due to import restrictions.

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Agriauto Stamping Company Pvt. Ltd, a wholly owned subsidiary of Agriauto Industries, will also observe partial shutdown in March.

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Dozens of industries in Pakistan have announced complete or partial shutdowns in recent months citing various reasons including reduced demand in the market and the company’s inability to maintain inventory as companies struggle to secure Letters of Credit (LCs).

Meanwhile, the government remains busy wooing the International Monetary Fund (IMF) to revive the stalled Extended Fund Facility (EFF) programme, which if approved by its board would release a funding tranche of over $1 billion.

The country remains short of much-needed dollars to meet its import and other external payment commitments. The central bank’s foreign exchange reserves stand at just $3.25 billion, barely enough for three weeks of essential imports.

Pakistan has already taken most of the other prior actions, which included hikes in fuel and energy tariffs, the withdrawal of subsidies in export and power sectors, and generating more revenues through new taxation in a supplementary budget.