KARACHI: Pak Suzuki Motor Co. Ltd has announced to shut-down its motorcycle plant due to raw material shortage.
In a communication sent to Pakistan Stock Exchange (PSX), the company said that due to shortage of inventory level, the management has decided to shut-down its motorcycle plant from March 20, 2023 to March 31, 2023.
However, the company’s automobile plant will remain in operation.
The automobile companies that are operating in Pakistan are facing shortage of raw material after a ban imposed by the government in May 2022.
The auto manufacturing company are unable to open Letter of Credit (LCs) for import motor vehicle kits.
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.
READ MORE: Raw material shortage compels Pak Suzuki Motors to stop production