Pakistan’s auto assembler Honda Atlas Cars (Pakistan) Limited (HCAR) on Wednesday decided to temporarily shut down its plant from March 9 to 31, citing supply chain disruptions.

The company announced its decision in a notice to the Pakistan Stock Exchange (PSX).

“Considering the current economic situation of Pakistan whereby the Government resorted to stringent measures including restricting the opening of Letters of Credit (LCs) for import of CKD kits, raw materials and halting foreign payments, the company’s supply chain has also been severely disrupted by such measures,” read the notice.

“As a result, the company is not in a position to continue with its production and ultimately has to shut down its plant from March 09, 2023 to March 31, 2023.”

Pakistan’s auto sector remains engulfed in various crises, with a number of automakers announcing complete or partial shutdowns in recent months citing various reasons including reduced demand in the market and the company’s inability to maintain inventory as companies struggle to secure LCs.

Just days ago, Ghandhara Nissan Limited (GHNL), facing major hurdles in import of raw materials and receiving clearance of their consignments from commercial banks, decided to shut down its plant from March 6 to 10.

Meanwhile, the government remains busy in looking to convince the International Monetary Fund (IMF) to revive the stalled Extended Fund Facility (EFF) programme, which if approved by its board would release a funding tranche of over $1 billion.

The country remains short of much-needed dollars to meet its import and other external payment commitments. The central bank’s foreign exchange reserves stand at just over $3.8 billion, barely enough for a month of essential imports. However, they are due to get a boost as a loan inflow from the Industrial and Commercial Bank of China (ICBC) makes its way to the SBP’s forex reserves.