The local auto industry is still bearing the brunt of import curbs inflicted by the State Bank of Pakistan. Car makers are extending shutdowns. Back-to-back production cuts observed in a single month have shattered the sales charts.
Pakistan Suzuki Motor Company (PSMC) has announced another shutdown for three more days. As per the notification, the car company can no longer continue production in the face of import restriction-related new mechanisms, which the State Bank of Pakistan has introduced in the near past. The automaker has announced the shutdown from October 24, 2022, to October 26, 2022.
It is pertinent to mention that this is the 8th time that company has suspended its assembly lines. Earlier, Pak Suzuki observed 15 non-production days in September and October 2022 combined.
Here’s the overall schedule exhibiting production shutdowns witnessed in the last two months.
- August 18 to August 19
- August 22 to August 26
- August 29 to August 31
- September 6 to September 9
- September 19 to September 23
- October 19 to October 21
Reason Behind The Fuss
The local automaker has called SBP import restriction the bone of contention in this prevailing production calamity. The central bank is not accepting the letter of credit from all the assemblers, including Pak Suzuki, which is compulsory to import the auto parts.
The company’s notification reads:
“Restrictions had adversely impacted clearance of import consignment which resultantly affected the inventory levels. Therefore, due to the shortage of inventory level, the management of the company has decided to shut down its automobile plant from October 24, 2022, to October 26, 2022. However, the motorcycle plant will remain operative.”
Mind you, Pak Suzuki is not the only car company facing production issues, other local car assemblers including Toyota are facing the same fate.
What do you think about these back-to-back production shutdowns? Share your thoughts in the comment section.
