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| Indus Motors has decided to keep the production plant closed from 1st to 13th August. (Photo: Reuters) |
Due to the continuous decline in the value of the rupee, Indus Motors has also decided to temporarily close its production plant after Pak Suzuki, a vehicle manufacturing company in Pakistan.
Indus Company's statement on Friday said that Vehicle production will be suspended from August 1 to 13.
According to the statement, import of CKD kits has become impossible due to government restrictions and hurdles in approval of letters of credit.
Indus Mutz added that economic instability and other related factors have made it difficult to maintain vehicle inventories.
Officials at Suzuki, another major company, were quoted as saying that the decision was made in view of the unavailability of raw materials due to import restrictions and exchange rate fluctuations.
It has tried to curb imports due to the devaluation of the rupee and the widening current account deficit.
This move has affected industries that depend on imports to manufacture their products.
They say the central bank has delayed sanctioning loans, which has affected their ability to import goods.
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| Pak Suzuki and Indus Motors have decided to close production plants. (Photo: AFP) |
Indus Motor Company Ltd chief executive Ali Asghar told Reuters that "next month there will be 10 working days only if the central bank allows us to open a letter of credit based on our commitment."
"The company is offering refunds to customers who are facing delays in vehicle delivery," he said.
"Delivery may be delayed by at least three months and prices will be revised as the country does not have available dollars." Shafiq A. Shaikh, head of public relations at Pak Suzuki Motors, which assembles Suzuki vehicles locally, said, "The restrictions have adversely affected the clearance of import consignments from the ports."
As a result of availability, the plant may be closed in August. According to Shafiq Shaikh, "If this situation remains, there will be major problems for them from August 2022."
According to data from Pakistan Automotive Manufacturers Association, from July 2021.
As of May 2022, sales of locally assembled cars in Pakistan have increased by nearly 50 percent compared to the same period last year.
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