Automaker Pak Suzuki Motor Company Ltd (PSMCL) on Wednesday announced plant shutdown from 13th to 17th February due to an economic crisis and Inventory shortage in the country.
“Due to continued shortage of inventory level, the management of the company has decided to shut down automobile plant from 13th to 17th February 2023,” stated a notice sent to the Pakistan Stock Exchange (PSX).
Pak Suzuki motors said that the company’s imports “adversely impacted clearance of import consignment which resultantly affected inventory levels”.
It was the fourth consecutive announcement by the company of delaying its production activities in 2023.
Earlier this month company announces that it would not be producing and booking motorcycles across the country until further notice due to issues with procurement and production following back-to-back plant closures as a result of the ongoing inventory shortage and economical crisis.
In a letter to dealers, the company stated, “Under the current economic conditions, import-based supply chain constraints, and uncertain production possibilities, we are unable to serve new customers.”
As a result, bookings for our motorcycle products will cease effective by 20th January 2023. However, bookings will resume as soon as the conditions improve for serving new customers.
The rupee has fallen, inflation has reached high levels for decades and Pakistan’s economy has collapsed alongside a political crisis. However, devastating floods and a global energy crisis have added additional stress and harmed the country’s economy.
A shortage of imported parts and materials forces automotive and other industries to shut down their operations. Due to a shortage of foreign reserves, thousands of containers containing essential food items, raw materials, and medical supplies have been held up at the Karachi port.
Banks are refusing to issue new letters of credit to importers because they don’t have enough dollars.