GTR suspends tyre production in Pakistan

GTR suspends tyre production in Pakistan

KARACHI: Ghandhara Tyre and Rubber Company Limited (GTR) on Monday announced to suspend its production due to prevailing economic conditions.

In a communication sent to Pakistan Stock Exchange (PSX), the company said that due to the prevailing economic conditions in the country and its impact on the ability of the banks to open Letter of Credit (LCs) for import of raw materials has severely disrupted the company’s supply chain and as a result, it is unable to continue with the production activities.

Therefore, the company has decided to close its production activities on the account of non-production days from March 24, 2023 to April 3, 2023. The production activities of the company would resume from April 4, 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.

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