- Cites shortage of inventory level as reason
Pak Suzuki Motor Company (PSMC) announced another shutdown of its motorcycle plant from August 18 to August 31.
In a notice to the Pakistan Stock Exchange (PSX) on Friday, it said: “Due to shortage of inventory level, the management of the company has decided to shut-down motorcycle plant from August 18, 2023 to August 31, 2023.”
Meanwhile, the automobile plant will remain operative.
During the ongoing year, the Japanese automaker has announced shutdowns over a dozen times. Last month, it said it would keep its motorcycle plant shut till August 15.
Businesses in Pakistan have been facing challenges on several fronts, including high energy costs, political instability and an inability to secure letters of credit for imports amid a severe dollar shortage.
A day ago, Baluchistan Wheels, the manufacturer and marketer of automotive wheel rims for small cars, big buses and trucks, announced that it was shutting down production for two weeks in the wake of a significant reduction in demand for its products from vehicle manufacturers.
Despite clinching a last minute programme with the International Monetary Fund (IMF) which provided some breathing space, experts have expressed concern that the economic woes will continue until structural issues behind the constant boom-and-bust cycles are addressed.
Meanwhile, the government in its bid to conserve low level of foreign exchange reserves – boosted only recently due to inflows from the IMF, Saudi Arabia and the UAE, –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 production needs.