The Ghandhara Tyre and Rubber Company has announced that its plant will commence operations starting from April 5th, 2023.
The current economic conditions in the country had significantly affected the ability of banks to open Letters of Credit (LCs) for the import of raw materials, leading to severe disruptions in the supply chain of Ghandhara Tyre. As a result, the company was unable to sustain its production activities.
The company had previously close its production activities on the account of non-production days from March 24, 2023 to April 03, 2023.
Initially, the company had planned to resume its operations from April 4th, 2023. However, due to a public holiday declared by the Sindh government, the company has rescheduled its operations to commence on April 5th, 2023.
Although recently the State Bank of Pakistan (SBP) withdrew the condition of prior permission for commercial banks in case of opening letter of credit for import proceeds.
Industry is hoping that after ease in condition the import of raw material will be released. However, some quarters still believe that banks are running out of foreign currency so they are not opening the LCs.
Previously, Ghandhara Nissan had decided to apply new vehicle production schedule from March 13, 2023 which would be on alternative weekly basis.
The company had also announced to shut down its production plant from March 06, 2023 to March 10, 2023.