Karachi March 2022: Pak Suzuki Motor Company Limited expects loss of PKR 9 billion in the first quarter of 2023 on outstanding foreign liabilities of USD 218 million, according to company filing to the exchange.
The company has incurred loss of PKR 6.3 billion in 2022.
The Company has outstanding foreign liabilities equivalent to USD 184 million at year end December 31, 2022, which increased to equivalent USD 218 million subsequent to the year end.
Upto 31 December 2022, the Company incurred an exchange loss of PKR 3.55 billion on foreign currency transactions and balances. Subsequent to year end PKR to USD parity has further deteriorated and resulted in the huge unrealized loss of PKR 9 billion (approximately) which may impact the equity of the Company in the year 2023.
If the foreign currency liability is not paid due to the restrictions imposed by the State Bank of Pakistan, the exchange loss of the Company would further enhance which will adversely impact the equity of the company in the financial year 2023.