According to a formal notice, the company will cease production operations from February 13 to February 17, 2023, due to a shortfall of inventory brought on by import restrictions enforced by the State Bank of Pakistan (SBP).
Also closed on weekends, the business will reopen on February 20, 2023. The notification reads as follows:
The local auto sector is suffering from a lack of foreign currency and issues with component supply.
Earlier this month, the Governor of the State Bank of Pakistan (SBP) received a letter from the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) and the Pakistan Automotive Manufacturers Association (PAMA).
The letter claims that the industry is in danger of going extinct as a result of SBP import restrictions and banks’ unwillingness to work with the auto industry. As a result, suppliers and assemblers are forced to fire workers, and companies suffer sporadic closures.
The letter claimed that, according to data from the Pakistan Bureau of Statistics (PBS), imports of car assembly kits fell 38% to $499 million in the first half of the fiscal year 2022–23 from $808 million in the same time the year before.
For automakers, this has led to a sharp decrease in sales and profits as well as a shortage of inventories. The letter cautioned that if corrective action is not done, this scenario will lead to a rise in capital flight, huge unemployment, a drop in tax revenue, and the closing of auto assembly factories.