On Monday, Pak Suzuki Motor Company announced that it will prolong the production shutdown of its motorcycle factory until April 15. On top of that, the company is also shutting down operations from Apr 7, 2023, to Apr 14, 2023.
The company has cited the major reason behind this extensive shutdown to be a shortage of raw materials. The import restrictions continue to wreak havoc on the auto industry as several companies are forced to shut down their operations.
“Due to shortage of inventory level… the management of the company has decided to extend shutdown period of its motorcycle plant till April 15, 2023,” Pak Suzuki informed the Pakistan Stock Exchange (PSX) of the news in a notice.
It further said, “The automobile plant will also observe shutdown on April 07, 2023, & April 14, 2023, due to shortage of inventory level.”
PMSC is the local manufacturer, assembler, and marketer of Suzuki automobiles, pickup trucks, vans, 4x4s, and motorcycles, as well as associated spare components. The Suzuki trademark originated in Japan.
PSMC stated last month that its motorcycle plant would be closed for 12 days, from March 20 to March 31. The decision was taken due to a persistent shortage of raw materials, the company stated at the time. At the time, the company’s automobile plant was still functioning. Different crises still besiege Pakistan’s auto industry.
Other publicly traded companies, such as Indus Motor Company Limited and Honda Atlas Cars, have been forced to halt production in recent months due to economic difficulties that have reduced central bank foreign exchange reserves to a level barely sufficient to cover four weeks of imports, prompting the government to impose import restrictions.
Our country is still in need of dollars to be able to pay for its imports and other international obligations. A lack of foreign currency reserves has put additional strain on an economy that is highly reliant on imports to keep its engines running.
What are your thoughts on this shutdown? Share with us in the comments below!
