Ghandhara Nissan Limited (GHNL) informed the Pakistan Stock Exchange (PSX) on Monday that it had decided to close its facility from March 6 to 10.
Additionally, the corporation noted that starting on March 13 production would resume on a different weekly schedule.
Ghandhara Nissan Statement on Closure of Its Plant
“In light of the recently introduced mechanism vide EPD Circular No. 20 of 2022 dated December 27, 2022, (effective from 2nd January 2023), commercial banks are advised to prioritize/facilitate the imports to essential sectors only, which does not include auto sector.”
“The Ghandhara Nissan Limited (GHNL) and its vendors continue to face major hurdles in import of raw materials and receiving clearance of their consignments from commercial banks. This has disrupted the entire supply chain and the vendors are unable to supply raw materials and components to the company.
“Accordingly, the company has insufficient inventory levels, it is unable to continue its production activities on regular basis,” it said.
“In view of the above, the company has decided to shut down its plant from 6th March, 2023 to 10th March, 2023. Moreover, the company has also decided to start its production from 13th March, 2023 on alternative weekly basis until further notice.”
The Ghandhara Nissan Limited (GHNL), a subsidiary of Bibojee Services (Private) Limited, was established on August 8, 1981, in Pakistan as a private limited company that was then changed to a public limited company on May 24, 1992. (BSL).
The main line of business for Ghandhara Nissan Limited (GHNL) is the assembly and progressive manufacturing of vehicles, including JAC trucks, the import and sale of parts and fully built-up Nissan, Dongfeng, and Renault vehicles, as well as the assembly of other vehicles in accordance with contract agreements.
Many industries in Pakistan have recently announced full or partial shutdowns, claiming a variety of factors such as decreased market demand and the difficulty of the company to keep inventories as businesses struggle to obtain Letters of Credit (LCs).
The government is still working hard to persuade the IMF to restart the Extended Fund Facility (EFF) program, which, if authorized by its board, would release a funding tranche of more than $1 billion.
To fulfil its obligations for imports and other external payments, the nation still lacks the critical amount of currency. The foreign exchange reserves of the central bank currently total little over $3.8 billion, hardly enough to cover a month’s worth of necessary imports.
The Industrial and Commercial Bank of China (ICBC) loan inflow is expected to increase the SBP’s foreign exchange reserves, though.
To read our blog on “Sazgar temporarily halt its cars production till March 04,” click here.
