- Plant will be closed from March 20 to March 31
Pak Suzuki Motor Company (PSMC) announced on Friday the shutdown of its motorcycle plant from March 20 to March 31 as it deals with an inventory shortage due to import restrictions.
“Due to shortage of inventory level, the management of the company has decided to shut-down motorcycle plant from March 20, 2023 to March 31, 2023,” read a notice sent to the Pakistan Stock Exchange (PSX).
“However, the automobile plant will remain operative,” added the company.
PMSC is the local assembler, manufacturer and marketer of Suzuki cars, pickups, vans, 4x4s and motorcycles as well as related spare parts. Meanwhile, the Suzuki brand itself is from Japan.
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”.
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 remained low.
Last week, Honda Atlas Cars Pakistan Limited announced the longest plant shutdown to date in the current economic crisis amongst the country’s automakers.
The company, a unit of Japanese car giant Honda Motor Co Ltd, said its plant would shut from March 9, 2023, to March 31, 2023.
Earlier this month, SBP Governor Jameel Ahmed, during a briefing to the Senate Standing Committee on Finance, said import compression would be eased after the completion of the International Monetary Fund (IMF) review because this policy cannot continue for a longer period of time.
Meanwhile, Pakistan remains in talks with the international lender for the revival of the bailout programme, a facility that has been stalled since November last year.