KARACHI: Sazgar has suspended its car production because of raw material shortage from February 27, 2023 to March 04, 2023.
The company’s supply chain has been disrupted because of stringent measures of minimizing the import of CKD (Complete Knocked Down) and raw material.
However, its manufacture plant will remain in operation for three wheeler and automotive parts.
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.
