Despite the government making it easier to get approval for Letters of Credit (LCs), Pakistan’s manufacturing sector is still facing problems. Demand has decreased, leading to some companies shutting down temporarily or reducing their operations. Agriauto Industries Limited, a manufacturer of auto parts, announced that it will have a partial shutdown in October due to a decrease in production volumes from its major customers. Its subsidiary, Agriauto Stamping Company Pvt. Limited, will also have a partial shutdown for the same reason. This is not the first time Agriauto has made such an announcement. Other companies in the auto sector, such as Suzuki, Toyota, and Atlas Honda, are also struggling and have shut down their plants multiple times due to inventory shortages caused by import restrictions. The decline in sales is primarily due to high car prices, expensive auto financing, and low consumer purchasing power. The textile sector, which is a major contributor to Pakistan’s exports, is also facing a decline in demand and economic difficulties. Shahzad Textile Mills Limited has decided to shut down some of its units indefinitely due to lower market demand for yarn. They believe this decision will bring long-term benefits.
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