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Hinopak Motors Limited (HINO) has become the latest automaker to shut operations on a temporary basis as it faces consequences of government’s import restrictions and struggles to continue production.

Hinopak, which assembles and manufactures Hino buses and trucks, shared the development in a notice to the Pakistan Stock Exchange (PSX) on Tuesday.

“Considering the current economic situation of Pakistan, whereby the commercial banks have been advised by the State Bank of Pakistan (SBP) to prioritize/facilitate the imports to essential sectors only, which does not include the auto sector. Consequently, the company has been facing hurdles in opening of LCs for the import of CKDs and other raw materials,” read the notice.

“Accordingly, the company is not in a position to continue with its production activities and has to temporarily shut down its chassis assembly plant from March 24, 2023 to April 04, 2023,” it added.

Hinopak is a subsidiary of Hino Motors Limited Japan and the ultimate parent company is Toyota Motors Corporation Japan.

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 LCs. Industries are facing hindrances in operations as the country’s reserves remained low.

On Monday, Ghandhara Tyre and Rubber Company Limited (GTYR), which manufactures and trades tyres and tubes for automobiles and motorcycles, said it will temporarily shut down production from March 24 to April 3, citing supply chain disruptions.

Last week, Pak Suzuki Motor Company (PSMC) announced the shutdown of its motorcycle plant from March 20 to March 31 as it deals with an inventory shortage due to import restrictions.

Earlier, Honda Atlas Cars Pakistan Limited announced the longest plant shutdown to date in the current economic crisis amongst the country’s automakers. The company said its plant would shut from March 9, 2023, to March 31, 2023.

Pakistan remains engulfed in a balance of payment crisis, the country’s central bank chief had said that import compression would be eased after the completion of the International Monetary Fund (IMF) review.

Comments

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Arshad Mar 21, 2023 03:04pm
Its not a plant shutdown, Its a Bread supply-line shutdown of thousands of Families. Oh Wait, dirty politics is more important then hungry countrymen.
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Tulukan Mairandi Mar 21, 2023 03:48pm
Celebrations at the truck makers in China, who will roll in their substandard trucks via CPEC (China Pak Economic Colonization) while our people lose jobs and lives on the road due to unsafe China trucks
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Saleem Munshi Mar 22, 2023 03:38pm
Why years of just assembling with no technology transfer and complete indigenous production? HALWA line of economy had to collapse one day and that day has arrived.
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