Read why Automaker Suzuki shut’s their plant in Pakistan

Pak Suzuki Motors said it would close its two- and four-wheeler operations from June 22 to July 8 due to a scarcity of accessories after the central bank tightens import controls.

Suzuki plants closer in Pakistan:

The plant’s closures were reported in a company filing on Pakistan’s stock exchange. 

According to the filing, the company alleged that a process implemented by the State Bank of Pakistan (SBP) in May 2022 requiring enterprises to seek authorization to import knocked-down kits had hampered consignment clearing and the company’s inventory. 

As a result of the shortage of components and accessories, plants were forced to close temporarily.

This is not the first time the corporation has shut down a plant; in August 2022, Pak Suzuki shut down its four-wheeler plant for 75 days, from August 2022 to June 19.

As stated by the chairman Kinji Saito:

According to the company’s financial report for the 1st quarter that ended in March 2023, the chairman, Kinji Saito, stated in their director’s note that the country’s ongoing economic crisis and the bank’s import policy have all negatively impacted the automobile sector.

As per the study, net sales revenue declined by 54% from Pakistani Rupees (PKR) 47,736 million in January-March 2022 to PKR 21,839 million in January-March 2023.

According to the Dawn, the SBP’s policy also harmed the import of totally knocked-down kits by local assemblers, which plummeted by 54% to $712 million between April 2022 and February 2023, from $1.558 billion in the same period last fiscal year.

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