Pakistani car industry is reeling from the woes of the worst inflation in the country’s history. Earlier today, Baluchistan Wheels Limited (BWHL) extended its production shutdown until December 30 due to dampened economic activity.
In an official notice to Pakistan Stock Exchange (PSX), BWHL stated:
In furtherance to our earlier disclosure dated December 09, 2022 regarding the temporary closure of production activities due to drop in our sales order from the OEMs [Original Equipment Manufacturers] owing to depressed demand of photos. It is hereby informed that closure of production activities of the company shall continue till Friday December 30, 2022
BWHL’s management has decided to halt production from December 12 to 23 due to low vehicle demand. The company, which makes and sells automotive wheel rims for trucks, buses, tractors, cars, and mini commercial vehicles, said OEM sales orders are down.
According to the experts, high car prices have lowered demand, putting companies under pressure. As global orders fall, experts expect more companies to shut down production, which may also hurt exports.
Toyota Indus Motor Company (IMC) also announced 11 non-production days (NPDs) from December 20 to December 30, citing import approval delays.
After a catastrophic rupee depreciation, the State Bank of Pakistan (SBP) has restricted Letters of Credit (LC) approval, which hit the import-dependent auto industry badly. In the first five months of the fiscal year, auto sales have fallen 39%.
The first five months of the fiscal year have seen 66,458 auto sales, down from 108,635 last year. Analysts reckon that the situation is likely to worsen as the auto industry continues to sustain massive blows from the ongoing economic turmoil.
Via: Business Recorder
Job
Good,only food related industry should grow
actually the “black money”is dead, so lame excuses are coming in.
Many people will be left unemployed