Operational troubles continue to pound Pak Suzuki Motor Company (PSMC) which has announced another series of non-production days (NPDs) for January 2023.
A recent notification highlights that the company will halt its production and assembly operations from January 16-20, 2023, due to the State Bank of Pakistan’s (SBP) restriction on automotive imports.
The company states that the prior non-approval of the letter of credit has created hurdles in importing knockdown kits, causing inventory problems for them.
The notification reads:
The company highlights that its two-wheeler plant will remain operational.
Recently, the State Bank of Pakistan (SBP) eased the import sanctions on Completely Knocked Down (CKD) kits for local car assemblers. This decision is to enable the auto sector to restabilize its production and sales.
Although, due to the ongoing situation, analysts believe that car sales will remain sluggish for the remainder of FY 2022-23. They reckon that due to a current dearth of essential foreign exchange, the auto sector will not be a government priority.