Due to a lack of inventory, Pak Suzuki Motor Company (PSMC) said on Friday that it would again prolong the suspension of its facility from January 16 to January 20, 2023. The automaker informed the Pakistan Stock Exchange of the development in a notice.
The message stated, “Further to our letter dated January 06, 2022, on the aforementioned subject, kindly note that due to the persistent shortfall in inventory level, the management of the company has decided to extend the shutdown of the vehicle plant from January 16, 2023, to January 20, 2023.”
“However, the motorcycle plant will remain operative,” said PMSC, which is engaged in the assembling, progressive manufacturing, and marketing of Suzuki cars, pickups, vans, 4x4s and motorcycles, and related spare parts.
Due to a scarcity of inventory, PSMC had previously announced on December 26 that its facility for cars and motorcycles will be temporarily closed from January 2 to January 6.
At the time, PSMC reported that, by circular No.09 of 2022 dated May 20, 2022, the State Bank of Pakistan (SBP) has established a process for prior authorization for imports within the HS code 8703 category (including CKDs). This limitation “had significantly impacted clearance of import consignment, which therefore harmed the inventory levels,” the manufacturer claimed.
Due to the SBP’s limits on the issue of Letters of Credit following relentless currency depreciation, Pakistan’s auto industry, which is heavily dependent on imports, is in crisis.
High auto prices have slashed demand, according to economists, who blame this trend. They claim that the situation will only get worse unless import restrictions are loosened and energy shortages are addressed.
