Karachi September 6 2022: Pak Suzuki Motors, the manufacturer of Alto and Ravi, announced to shut its plant for 14 more days according to company’s filling to the exchange.
Company already closed its production plant for 10 days with first closure on 18th August 2022 for two days.
Company explain that State Bank of Pakistan (SBP) has introduced a mechanism for prior approval for import under HS code 8703 category (including CKDs) vide circular No.09 of 2022 dated May 20, 2022. These import restrictions had adversely impacted clearance of import consignment which resultantly affected the inventory levels.
The government have partially repealed the import ban in August 2022 (leaving in place the ban on cars, mobile phones, and household appliances), and are committed to eliminate the requirement for import payment authorization at end-August 2022, depending on market conditions. Meanwhile, in early August 2022 CMRs were reduced on terms of payment above 90 days and cash margin requirement (CMR) introduced in April are set to lapse in December 2022.
The Government of Pakistan noted concern about disorderly conditions in the FX market, should restrictions be removed while complementary macroeconomic policies have not yet fully kicked in.
Therefore, due to shortage of inventory level, the management of the company has decided to shut down period of automobile plant till September 09, 2022. However, due to continued shortage of CKD raw materials, management decided to extend the shutdown of automobile plant from September 12, 2022 to September 16, 2022. However, motorcycle plant will remain operative. Further update, if any, in this regard will be communicated accordingly.
Further, in lieu of periodic maintenance, the automobile plant will also be shut down from September 19, 2022 to September 23, 2022. However, motorcycle plant will remain operative.
