Pak Suzuki Motor Company Limited (PSMCL) has been forced to shut down its Karachi plant due to a delay in the approval of Completely-Knocked Down (CKD) kits, which have been stuck at the port for the past 45 days. This is the first time the plant has closed this year.
The shutdown has placed significant financial pressure on the company, as PSMCL struggles to manage billions of rupees in detention and demurrage fees. Additionally, the government is losing out on taxes and duties because of the halted production and sales, according to Shafiq Ahmed Shaikh, PSMCL’s Corporate Affairs Head.
Industry associations, such as the Pakistan Automotive Manufacturers Association (PAMA) and the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM), have called on the government to adhere to the 2021-2026 auto policy.
They have warned that ongoing delays and disruptions will discourage new investors and worsen conditions for existing foreign investors in the auto sector.
The broader automotive industry has faced severe challenges over the past two and a half years, resulting in many local parts manufacturers laying off thousands of workers due to reduced production. High taxes, interest rates, and steep energy costs have forced numerous industrialists to cut back on factory shifts and reduce staff.
Auto industry expert Mashood Khan supports the companies’ position, arguing that the government needs to take decisive action to resolve these issues.
Khan suggests that the government should engage with industrialists to quickly address the problems and rectify any irregularities within 24 hours, emphasizing that prioritizing the industry is crucial for the country’s overall interests.
“The cost of doing business is a complex issue that the government must address to ensure the industry’s survival,” Khan said.
