Pak Suzuki Motor Company (PSMC) will shut down production for the few days next month as the company observes non-production days (NPDs) due to shortage of Completely Knocked Down (CKD) kits as restriction on the imports are still in place by the Federal Government to save the country’s foreign exchange and recover the trade deficit.
According to the reports, Pak Suzuki will also observe NPDs in August 2022 as the company has failed to obtain approval for Letter of Credit (LCs) by the State Bank of Pakistan (SBP) for the import of Completely Knocked Down (CKD) kits. In order to manage the unavailability of CKD kits and other resources, the Pak Suzuki may shut down their plant for a few days next month.
It is pertinent to mention that Toyota Indus Motor Company (IMC) has also announced to shut down production for a few days next month citing the same reasons. Furthermore, the company is also planning to refund customers for already booked order as delay in delivery of vehicles in expected.
It has been becoming extremely hard for automotive companies to obtain Letter of Credit (LCs) for the import for Completely Knocked Down (CKD) kit due to restrictions imposed by the Government on import of automobile and their parts in order to recover the trade deficit and save foreign exchange.
It bears mentioning that Federal Government is set to lift the import ban on non-essential and luxury items that was placed on May 19, except automobiles and smartphones as these items have the largest impact on foreign exchange.
Read more: Govt to Lift Import Ban on Luxury Items.