A slowdown in economic activity continued to bite Pakistan's industrial sector, as Baluchistan Wheels Limited (BWHL), on Friday announced to prolong its closure of production activities till December 30.
BWHL shared the development in a notice sent to the Pakistan Stock Exchange (PSX).
“In furtherance to our earlier disclosure dated December 09, 2022 regarding the temporary closure of production activities due to drop in our sales order from the OEMs [Original Equipment Manufacturers] owing to depressed demand of photos.
“It is hereby informed that closure of production activities of the company shall continue till Friday December 30, 2022,” said the notice.
Earlier this month, the management of BWHL decided to temporarily close or stop production activity due to the depressed demand for autos in the market, from December 12, 2022, till December 23, 2022.
“The company is facing a drop in sales orders from the OEMs,” said the company, which is engaged in manufacturing and marketing automotive wheel rims for trucks, buses, tractors, cars and mini commercial vehicles.
Experts attributed the development to high auto prices, which has crashed demand, leaving companies under pressure.
Experts warned more companies are expected to take a similar route, as global orders are declining, which would dent exports.
Days ago, Indus Motor Company (IMC), the assembler of Toyota-brand automobiles in Pakistan, announced that it will completely shut down its production plant from December 20 to December 30, citing its struggle with delays pertaining to approval for imports.
The country’s auto industry, highly dependent on imports, has been caught in the midst of an exchange-rate crisis, as the SBP, after unabated rupee depreciation, imposed restrictions on opening of Letters of Credit (LCs).
The overall automobile sales plunged by 39% year-on-year in the first five months of the current fiscal year.
Total auto sales in the first five months of the current fiscal stood at 66,458 units compared to 108,635 units in the corresponding period last year.