KARACHI: Suzuki Motors Co. Ltd. on Thursday warned shutting down its production plant in Pakistan due to import restrictions.
In a communication sent to Pakistan Stock Exchange (PSX), the auto manufacturer said that State Bank of Pakistan (SBP) had introduced a mechanism for prior approval for import under HS Code 8703 category (including CKD) vide circular No. 09 of 2022 dated May 20, 2022.
“Restrictions had adversely impacted clearance of import consignments of the company from the ports which might result in shutdown of the plant in near future,” the company said, adding that Pak Suzuki has stopped bookings of its products since July 01, 2022.
The company further clarified that at present it had not plan to shut down the plant. “The production schedule of the company and any non-production days remain contingent on a number of external factors,” it said.
The company is actively monitoring its production and operations and is closely working with the government of Pakistan and the central bank to alleviate the present challenges.
A day earlier, Indus Motors Company– the manufacturers of Toyota cars in Pakistan, also issued a statement in this regard.
The IMC said that the auto sector was facing unprecedented difficulties in its operations due to ongoing economic challenges and factors beyond the control of automobiles manufacturers.
“The unprecedented devaluation of Pakistan Rupee (PKR), coupled with restrictions imposed by the State Bank of Pakistan (SBP) regarding prior LC approval for Completely Knocked Down (CKD) imports and continuing financing instability has radically impacted the auto industry,” the IMC said.
The company clarified that as of today (July 27, 2022), there are no plans fixed for complete plant shutdown for more than two weeks in the month of August 2022.