Lahore April 13 2023: Honda Atlas Cars (Pakistan) Limited extended its plant shut down for a period of another 15 days as company supply chain is severely disrupted, according to company filing to the exchange.
Considering the current economic situation of Pakistan whereby the Government resorted to stringent measures including restricting opening of LCs for import of CKD kits, raw materials and halting foreign payments, the Company’s supply chain has also been severely disrupted by such measures.
As a result, the Company is not in a position to continue with its production and ultimately has continued to shut down its plant from April 16, 2023 to April 30, 2023. The company plant is already closed since March 09, 2023.
Country’s Central Bank Reserves were about USD 4.2 billion on 24th March 2023, or less than one month of imports, down from a peak of more than USD 20 billion at end-August 2021. Falling reserves reflect large, albeit declining, current account deficits (CADs), external debt servicing and earlier FX intervention by the central bank, particularly in 4Q22, when an informal exchange-rate cap appears to have been in place.
