Pak Suzuki Motor Company’s (PSMC) production schedule continues to suffer due to restrictions on imports.
In a recent notification, the automaker announced that it will halt production for 5 more days, citing a delay in the approval of the letter of credit (LC). It highlighted that PSMC will shut down production from August 22 to 26.
The notification reads:
Restrictions have adversely impacted clearance of import consignment which resultantly affected the inventory levels.
According to a previous report, the State Bank of Pakistan (SBP) is delaying LC approval for CKD imports, which is causing production and delivery delays. These issues caused Toyota (IMC) to observe non-production days (NPDs) and cut back on operational costs and adjust as per the ongoing situation.
Previously, PSMC announced two non-production days (NPDs) citing the same reason as above. The delay in LC approval has wreaked havoc on the local car industry as multiple automakers observe production halts to cope with the ongoing economic and administrative hurdles.
Experts reckon that these steps will aggravate the industrywide struggles as the import restrictions and ongoing inflation continues to cost car companies millions of rupees in revenue and thousands of employees lose their livelihoods.
contradicted to 4:36pm article.