General Tyre & Rubber (GTR) is forced to announce a series of non-production days (NPDs) for February 2023 due to an economic crisis and ongoing operational issues.
An official notification states that the company will suspend production operations from February 13, 2023, to February 17, 2023, due to a shortage of inventory caused by import restrictions imposed by the State Bank of Pakistan (SBP).
The company will also remain closed on the weekend and resume operations on February 20, 2023. The notification is as follows:
Auto Industry on the Brink of Extinction
Foreign exchange shortages and component supply problems are suffocating the local automobile industry.
Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) and Pakistan Automotive Manufacturers Association (PAMA) sent a joint letter to the State Bank of Pakistan (SBP) Governor earlier this month.
According to the letter, the industry is on the verge of extinction due to SBP import restrictions and banks’ lack of cooperation with the auto sector. As a result, factories face intermittent closures, while assemblers and suppliers lay off employees.
Citing data from the Pakistan Bureau of Statistics (PBS), the letter stated that the car assembly kit imports decreased 38% to $499 million in the first half of the fiscal year 2022-23, compared to $808 million in the same period of the previous fiscal year.
This has resulted in a massive sales and profit decline for automakers, as well as an inventory shortage. The letter warned that if corrective action is not taken, this scenario will result in massive unemployment, a decline in government revenue, the closure of automobile assembly plants, and capital flight.
Well if these company had been sourcing raw materials and parts indigenously we would not have this issue, the automobile sector only makes bumpers at home here the rest of the car is imported. Why the surprise?
no effort made to produce raw material locally. everything is imported
Rubber is made from extract of Rubber plant which grows only in Malaysia, Indonesia etc
Do u have any rubber plants in Pakistan?
Bas full bongian maroo without logic