Foam manufacturer Diamond Industries Limited said on Tuesday that it has suspended its operations on a temporary basis with effect from January 10, 2023, citing an adverse economic situation in Pakistan and unavailability of imported raw material.

The company shared the development in a notice to the Pakistan Stock Exchange (PSX).

“Due to adverse economic conditions in the country and non-availability of imported raw material, the company has suspended its manufacturing operations for a short term with effect from Tuesday, January 10, 2023, till further notice subject to the availability of imported raw material in the country,” read the notice.

The development comes as several companies in recent weeks have announced either a shutdown or reduction in operations in Pakistan owing to compressed demand, inventory shortage, energy crunch, and supply chain disruptions.

Incorporated under the Companies Ordinance, 1984 as a private limited company on June 18, 1989, Diamond Industries is engaged in the manufacture and sale of foam products and PVA products consumed in industry and domestically.

Meanwhile, market experts believe the situation will remain gloomy in the coming months, with negative growth expected in the industrial sector.

Days ago, Millat Tractors Limited, the assembler and manufacturer of tractors in Pakistan, announced to close its operations from January 6 onwards citing low demand and cash flow constraints.

Earlier, Crescent Fibres Limited, engaged in the manufacture and sale of yarn, announced to curtail production by up to 50% on a temporary basis.