After Toyota, Pak Suzuki also announces to shut down production from Jan 2-6

[N.Siddiqui]

• Pak Suzuki to shut down its plant from January 2-6.
• PSMC cites shortage of inventory level as reason behind its decision.
• Company to close plant for automobile as well as a motorcycle.

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After Toyota manufacturers, Pak Sukuzi Motor Company (PSMC) Monday announced that its production plant will be closed completely from January 2 to 6 due to the shortage of inventory level following a restriction on the import of auto parts.

PSMC, in a notice sent to the Pakistan Stock Exchange (PSX), said that the State Bank of Pakistan (SBP) has introduced a mechanism for prior approval for import under "HS code 8703 category (including completely knocked down - CKDs) vide circular No.09 of 2022 dated May 20, 2022".

“Restrictions had adversely impacted clearance of import consignment which resultantly affected the inventory levels.

"Therefore, due to shortage of inventory level, the management of the company has decided to shut down its plant for the automobile as well as a motorcycle for the period from January 2 to January 6, 2023,” PMSC said.

It should be noted that PSMC is engaged in the assembling, progressive manufacturing and marketing of Suzuki cars, pickups, vans, 4x4s and motorcycles and related spare parts.

The local auto industry is highly dependent on imports and is facing severe difficulties in the midst of an exchange-rate crisis, as the central bank imposed restrictions on the opening of letters of credit (LCs) following a severe liquidity crunch.

On Friday, the management of Baluchistan Wheels Limited (BWHL) announced to prolong its closure of production activities till December 30 due to depressed demand for autos in the market.

Earlier this month, Indus Motor Company (IMC), the assembler of Toyota automobiles, also announced that it will completely shut down its production plant from December 20 to December 30, citing its struggle with delays pertaining to approval for imports.

Moreover, Millat Tractors Limited also announced the closure of its production on Fridays citing a decline in demand for tractors in the country.

After Toyota, Pak Suzuki also announces to shut down production from Jan 2-6

Pak Suzuki to shut down its plant from January 2-6.PSMC cites shortage of inventory level as reason behind its decision.Company to close plant for automobile as well as a motorcycle.After Toyota...

www.geo.tv

Suzuki follows Toyota, to stop production in Pakistan next month

Citing a shortage of inventory level following a restriction on the import of auto parts, Pak Sukuzi Motor Company (PSMC) on Monday announced that its production plants will be closed completely from January 2 to 6, reported Geo News.

auto.hindustantimes.com

 

[N.Siddiqui]

Where is that Kanjar Mir Bajwa?

Giving explanatory interview to another lifafi Javed Chaudhry...

 

[TigerOfMysore]

Barely a peep from our mainstream media. What we are seeing is the nation go into an economic death spiral.

 

[SIPRA]

Giving explanatory interview to another lifafi Javed Chaudhry...

Good combination. A Kanjar being interviewed by a Dalla.

 

[Vapnope]

Car manufacturing companies in Pakistan have cartel arrangement all thanks to NS who allowed this to happen. End users are paying millions for tin cans and state has no concern for customer rights.

 

[N.Siddiqui]

Barely a peep from our mainstream media. What we are seeing is the nation go into an economic death spiral.

Mainstream media is kept busy with IK's Tosha Khana watch, and some concocted Audios and Videos.

And with additional 2 billion Rs. of ads and privileges from Shahbaz govt.

 

[NooriNuth]

Where is that Kanjar Mir Bajwa?

Never blame your beloved politicians?

 

[Vapnope]

@SIPRA sb Dealers are buying cars not the end user. How many pakistanis are willing to pay 2 million pkr for a basic car? This is a cartel arrangement of car manufacturers who are controlling the cost, profit and supply. This isn't a perfect competition market.

 

[SIPRA]

@SIPRA sb Dealers are buying cars not the end user. How many pakistanis are willing to pay 2 million pkr for a basic car? This is a cartel arrangement of car manufacturers who are controlling the cost, profit and supply. This isn't a perfect competition market.

Fully agree.

 

[TigerOfMysore]

Car manufacturing companies in Pakistan have cartel arrangement all thanks to NS who allowed this to happen. End users are paying millions for tin cans and state has no concern for customer rights.

I agree a hundred percent with what you have written.
However regardless of our views on the car manufacturers - these shutdowns are a reflection of a broader weakness in the economic markets, around foreign liquidity. We have essentially run out of foreign exchange.

What this is likely to do is to cause the following:

1) Shortages in imports which will impact both necessary and non-necessary goods.
2) Lack of necessary items will impact both export and internal oriented production
3) This will cause an overall economic slowdown resulting in massive layoffs and unemployment
4) This will cause a drop in consumption
5) This will impact associated payroll and sales tax
6) Which will result in more borrowing and missing of our tax goals
7) This will result in more inflation reach hyper-inflation levels
8) This will result in massive reduction of wealth of Pakistanis
9) This will also result in across the board slowdown of economic activity
10) Farming output will reduce due to reduction in inputs that are import aligned
11) All items will become expensive
12) Combine slowdown of economic with hyper-inflation and we are likely to see a full blow depression

I had predicted this exact scenario months ago

Result will be a foreign bailout - with massive conditions around expenditure.
Pakistan essentially will have lost its independence without a single bullet being fired, thanks in large measure to the very people who are meant to safeguard our sovereignty.

 

[Riz]

GHQ ma jashan ka saman ha bhai phir to itni traki ho gai

 

[epebble]

Barely a peep from our mainstream media. What we are seeing is the nation go into an economic death spiral.

Economic pain: an illusion of choice​

Economic pain: an illusion of choice

Pakistan is facing an illusion of false choices in managing its ongoing economic crisis. It can either return to the...

www.brecorder.com

 

[Crimson Blue]

Congrats to all Think Tanks and Advisors over here on PDF:

 

[Vapnope]

I agree a hundred percent with what you have written.
However regardless of our views on the car manufacturers - these shutdowns are a reflection of a broader weakness in the economic markets, around foreign liquidity. We have essentially run out of foreign exchange.

What this is likely to do is to cause the following:

1) Shortages in imports which will impact both necessary and non-necessary goods.
2) Lack of necessary items will impact both export and internal oriented production
3) This will cause an overall economic slowdown resulting in massive layoffs and unemployment
4) This will cause a drop in consumption
5) This will impact associated payroll and sales tax
6) Which will result in more borrowing and missing of our tax goals
7) This will result in more inflation reach hyper-inflation levels
8) This will result in massive reduction of wealth of Pakistanis
9) This will also result in across the board slowdown of economic activity
10) Farming output will reduce due to reduction in inputs that are import aligned
11) All items will become expensive
12) Combine slowdown of economic with hyper-inflation and we are likely to see a full blow depression
13) I had predicted this exact scenario months ago

Result will be a foreign bailout - with massive conditions around expenditure.
Pakistan essentially will have lost its independence without a single bullet being fired, thanks in large measure to the very people who are meant to safeguard our sovereignty.

No disagreement there. Your last line sums up everything clearly.

 

[SIPRA]

GHQ ma jashan ka saman ha bhai phir to itni traki ho gai

Destruction of Pakistan is what these Generals aimed for. They have succeeded and Pakistan is sinking, day by day.