On Monday, Pak Suzuki Motor Company Limited declared that its motorcycle plant will be closed until April 15, 2023.
The decision was communicated to the Pakistan Stock Exchange (PSX) due to a previously notified inventory shortage on March 16, 2023.
As a result, the company’s management has extended the shutdown period. Additionally, the automobile plant will also be shut down on April 7, 2023, and April 14, 2023, due to inventory shortages.
In May 2022, the government of Pakistan imposed a ban that has resulted in a shortage of raw materials for automobile companies operating in the country. As a result, these companies are unable to open Letters of Credit (LCs) to import motor vehicle kits.
While the State Bank of Pakistan (SBP) recently withdrew the prior permission condition for commercial banks when opening LCs for import proceeds, the industry is still struggling to secure the necessary raw materials.
Some industry insiders suggest that banks may be running out of foreign currency, which is why they are not opening LCs, while others remain hopeful that the easing of conditions will ultimately lead to the release of raw material imports.
