Economic instability in Pakistan, Indus Motors decision to partially close production plant

 Indus Motors has also decided to temporarily close its production plant after Pak Suzuki, a car manufacturing company in Pakistan, following the continuous depreciation of the rupee.

In a statement issued by the Indus Company on Friday, it has been said that the production of vehicles will be suspended from August 1 to 13.

According to the statement, importation of CKD kits has become impossible due to government restrictions and hurdles in approval of letters of credit.

Knudsmutz added that economic instability and other related factors have made it difficult to maintain vehicle inventory.

A report published in the British news agency Reuters on Wednesday quoted officials from Toyota car maker Indus Motor Co Ltd and Suzuki as saying that the decision was due to import restrictions and exchange rate fluctuations due to raw materials. In view of the non-availability of

The government has tried to curb imports in recent weeks due to rapidly dwindling foreign reserves, a depreciating rupee and a widening current account deficit.

The 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.

"There will be 10 working days next month only if the central bank allows us to open a letter of credit based on our commitment," Indus Motor Company Ltd chief executive Ali Asghar told Reuters.

He said that the company is offering refunds to customers who are facing delays in the delivery of vehicles. "Delivery may be delayed by at least three months and prices will be revised as the country does not have available dollars."

Shafiq A Sheikh, 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."

He said that the plant may be closed in August due to non-availability of raw materials.

According to Shafiq Sheikh, "If this situation continues, there will be big problems for them from August 2022."

According to data from the Pakistan Automotive Manufacturers Association, sales of locally assembled cars in Pakistan from July 2021 to May 2022 have increased by nearly 50 percent compared to the same period last year.