Pak Suzuki Motor Company (PSMC) has announced another round of non-production days (NPDs) for January 2023 due to operational issues.
According to a recent announcement, the company will suspend production and assembly operations from January 2-6, 2023, due to the State Bank of Pakistan’s (SBP) restriction on automotive imports.
According to the company, the non-approval of the letter of credit has created obstacles in importing knockdown kits, causing inventory problems.
The notification reads as follows:
Previous reports stated that SBP delayed LC approval for CKD imports, causing production and delivery delays. Because of these issues, Toyota IMC and several other automakers observed non-production days (NPDs) to adjust.
The new SBP measures are pounding the local auto industry, with multiple automakers observing production halts to deal with the ongoing economic and administrative challenges. Market rumours also point to a mass exodus of automakers if the situation remains volatile.
Pak Suzuki Motor Company Limited has been suffering from a severe raw material shortage for several months. Previously, the company announced a temporary shutdown of its production plant due to government import restrictions.
It stated that the State Bank of Pakistan (SBP) had implemented a mechanism for prior approval for imports under HS Code 8703 (including CKDs) in Circular No. 09 of 2022, dated May 20, 2022. “Restriction had negatively impacted clearance of import consignment, which in turn had an impact on inventory levels,” it added.
To read our blog on “Suzuki Wagon R will be phased out in Pakistan in 2023,” click here
