Lotte Chemical Pakistan Limited (LOTCHEM), engaged in the manufacturing and sale of Pure Terephthalic Acid (PTA), on Tuesday announced it will suspend its plant operations on a temporary basis from March 15 onwards, citing inability to import raw materials.

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

“Due to the current economic situation prevalent in the country in relation to the foreign exchange reserves and its impact on the ability of banks to open letter of credit (LC) for import of raw materials, the company is unable to continue its production activities,” read the notice.

“Therefore, the company has decided to temporarily suspend its plant operations from March 15, 2023 till further notice,” it added.

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Lotte is a manufacturer and supplier of PTA, which is predominantly used for producing saturated polyesters, mainly polyethylene terephthalate (PET) and related polymer products such as fibers, resins, thin films and bottles.

Pakistan’s industrial sector remains engulfed in various crises, with a number of companies 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.

Last week, Pakistan’s auto assembler Honda Atlas Cars (Pakistan) Limited announced it would temporarily shut down its plant from March 9 to 31, citing supply chain disruptions.

Earlier, State Bank of Pakistan (SBP) Governor Jameel Ahmed, during a briefing to the Senate Standing Committee on Finance, said import compression would be eased after the completion of the International Monetary Fund (IMF) review because this policy cannot continue for a longer period of time.