According to supply chain issues, Ghandhara Tyre and Rubber Company Ltd (GTYR) will temporarily stop manufacturing from March 24 to April 3.
In a notice to the Pakistan Stock Exchange (PSX) on Monday, the business—which produces and trades tyres and tubes for motorcycles and automobiles— announced the news.
The notice stated: “Due to the country’s current economic difficulties and their impact on banks’ ability to open LCs (Letters of Credit) for the import of raw materials, the company’s supply chain has been seriously interrupted, and as a result, it is unable to continue with the manufacturing activities.
Thus, due to non-production days from 24 March to 3 April 2023, the company has chosen to temporarily halt/close its production activities.
As the aforementioned factors stabilize, it will “continue to monitor the situation for potential courses of action,” it added.
Due to the SBP’s limits placed on the opening of LCs as a result of the continuing depreciation of the rupee, Pakistan’s auto industry, which is heavily dependent on imports, is currently experiencing a crisis. Because the nation’s reserves remained low, industries are experiencing operational challenges.
Pak Suzuki Motor Company (PSMC), which is faced with a shortage of inventory as a result of import restrictions, stated last week that its motorbike production would be shut down from March 20 to March 31.
The country’s automakers earlier announced that Honda Atlas Vehicles Pakistan Limited had shut down its plant for the longest period of time.
According to the corporation, the factory would be closed from March 9 until March 31, 2023.
The director of Pakistan’s central bank had previously stated that import compression would be eased following the conclusion of the International Monetary Fund (IMF) review because this policy cannot be maintained for an extended period of time with the country still experiencing a balance of payments crisis.