Pak Suzuki Motor Company (PSMC) announced on Monday that it will close its automobile and motorcycle manufacturing plants for a week in the new year, following a similar announcement from fellow Japanese automaker Toyota.
In a declaration submitted to the Pakistan Stock Exchange (PSX) on Monday afternoon, the company noted the new process adopted by the government for the import of components for completely knocked-down (CKD) units under the customs import code HS: 8703.
The Company stated: “Restrictions had adversely impacted clearance of import consignment, which resultantly affected the inventory levels.”
PMSC stated: “Therefore, due to a 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, 2023, to January 6, 2023.”
“It is a very critical time for Pak Suzuki due to import restrictions and also no future information till how much longer these restrictions will remain in place,” the Spokesperson for PMSC, Shafiq Ahmed Sheikh stated.
He further Added: “Detention, demurrage, and kibor+3% are really hurting our industry.”
With a lack of manufacturing resulting in no productivity, Shaikh stated that this scenario is also difficult for their dealerships and vendors who are experiencing a lack of sales.
Sheikh further added: “We request the government to please have talks with the industry to solve the matter on an urgent basis.”
PSMC, a company with the same initials that are listed on the PSX, saw its share price rise by Rs5.02 (or 3.76%) on Monday, from Rs133.99 to Rs138.71.
Throughout the day, it fluctuated between a high of Rs142.88 and a low of Rs129.50.
On Monday, approximately 991,776 PSMC shares were traded.