Pak Suzuki Motor Company has announced to suspend further production in September. It notifies Pakistan Stock Exchange (PSX) on Tuesday that it will observe Non-Production Day (NPD) throughout the month. The company blames the new system that demands the State Bank of Pakistan permission for CKD imports (SBP). Let’s see what would be the reason that Pak Suzuki announced the suspends of further production in September.
Official Statement of Pak Suzuki Motor Company (PSMC):
According to the official statement, the company stated that the new mechanism to approve CKD imports from the State Bank of Pakistan (SBP)has slowed down the importation of CKD kits. These restrictions of SBP adversely affected the clearance of import consignments which in turn affected inventory levels. And due to low inventory levels, the company management has decided to suspend production till September 9, 2022.
Pak Suzuki Plans Further Extension in Automobile Plant Shutdown:
However, he added, that due to the continuous shortage of CKD raw materials, the company is not operating at full capacity because it has inventory for only limited units. Although, in lieu of periodic maintenance, the company’s management is planning to extend the closure of the automobile plant from September 19, 2022, to September 23, 2022. This takes the total number of non-productive days for PSMC to 12 days this month. For this reason, a 15-day manufacturing halt was also announced by Toyota Indus Motor.
