Ghandhara Nissan Limited (GHNL) has decided to shut down its plant from March 6 to 10, it announced in a notice to the Pakistan Stock Exchange (PSX) on Monday.
Furthermore, from March 13 onwards, the company will resume production on an alternative weekly basis, it added.
“In light of the recently introduced mechanism vide EPD Circular No. 20 of 2022 dated December 27, 2022, (effective from 2nd January 2023), commercial banks are advised to prioritize/facilitate the imports to essential sectors only, which does not include auto sector.
“The company and its vendors continue to face major hurdles in import of raw materials and receiving clearance of their consignments from commercial banks. This has disrupted the entire supply chain and the vendors are unable to supply raw materials and components to the company.
“Accordingly, the company has insufficient inventory levels, it is unable to continue its production activities on regular basis,” it said.
“In view of the above, the company has decided to shut down its plant from 6th March, 2023 to 10th March, 2023. Moreover, the company has also decided to start its production from 13th March, 2023 on alternative weekly basis until further notice.”
Incorporated on August 8, 1981 in Pakistan as a private limited company and subsequently converted into a public limited company on May 24, 1992, the Company is a subsidiary of Bibojee Services (Private) Limited (BSL).
GHNL’s principal business is assembly / progressive manufacturing of vehicles including JAC Trucks, import and sale of parts/Nissan, Dongfeng and Renault vehicles in completely built-up condition and assembly of other vehicles under contract agreement.
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 in looking to convince 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 over $3.8 billion, barely enough for a month of essential imports. However, they are due to get a boost as a loan inflow from the Industrial and Commercial Bank of China (ICBC) makes its way to the SBP's forex reserves.