Pak Suzuki Motor Company (PSMC) said it is extending the shutdown of its motorcycle plant until 15 April, along with a suspension of its auto plant operations between 7 and 14 April, due to inventory shortages that have arisen because of import restrictions hitting the auto sector. Karachi-based PSMC’s inventory of raw materials likely have import origins, and a persistent shortage of foreign currency reserves as forex levels drop has placed pressures on the economy due to the need for import reliance. Other Pakistani-listed automakers including Indus Motor Company Limited and Honda Atlas Cars have also been forced to halt production in recent months as a result of central bank forex reserves dropping to a level that barely covers four weeks of imports. While Pakistan has pressed authorities to limit imports in order to protect the rupee, any tariffs on imports or import bans on goods badly needed, such as machinery or raw materials, have hit industries that depend on access to foreign goods to produce.
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