Baluchistan Wheels Limited (BWHL), a manufacturer of steel wheels for automobiles, has said it will shut production activities till August 31 due to a drop in sales.
The company, engaged in the manufacturing and marketing of automotive wheel rims for trucks, buses, tractors, cars and mini commercial vehicles, shared the development in a notice to the Pakistan Stock Exchange (PSX) on Thursday.
“Due to reduction in production volumes of our major customers/OEMs, the company is facing drop in its sales orders.
“Therefore, the management of the Company has decided to temporary close/stop production activities on account of non-production days from Friday, August 18, 2023 to Thursday, August 31, 2023,” read the notice.
The company added that it will resume production activities on Friday, September 01, 2023.
Businesses in Pakistan have been facing challenges on several fronts, including high energy costs and an inability to secure letters of credit due to dollar shortage in the country.
To conserve its low level of foreign exchange reserves – boosted only recently due to inflows from the IMF, Saudi Arabia and the UAE – the authorities in the cash-strapped country has restricted the flow of imports since last year.
While some curbs have eased, industrialists have raised concerns that they are finding it difficult to obtain import permits for their manufacturing needs.
Last week, RMS (Private) Limited, a construction company, expressed its intention to acquire the majority stake of BWHL.
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