Indus Motors, a car manufacturing company in Pakistan, has informed the Pakistan Stock Exchange (PSX) that it will temporarily halt its production from June 3 to June 8. The reason for the shutdown is the delay in opening Letters of Credit (LC) and shortages of inventory.
According to Indus Motors, their suppliers are facing difficulties in importing raw materials and obtaining clearance for their shipments. This is due to challenges in opening Letters of Credit and problems in the supply chain. As a result, the supply chain has been disrupted, and the company’s vendors are unable to provide the necessary materials and components to sustain production. Therefore, Indus Motors has made the decision to completely shut down its production plant during the mentioned dates.
The decision to halt production came after a meeting between Prime Minister Shehbaz Sharif, President Toyota Asia Yoshiki Konishi, and CEO of Indus Motors Ali Asghar Jamali.
It is important to note that the auto sector in Pakistan has been facing various crises, leading several automakers to announce complete or partial shutdowns in recent months due to different reasons.
The State Bank of Pakistan (SBP) imposed restrictions on the opening of Letters of Credit due to the depreciation of the Pakistani rupee. This has caused difficulties for industries in their operations as the country’s reserves reached critical levels.
This marks the fourth time this year that Indus Motors has announced a production closure. They previously shut down their plant from February 1 to February 14, May 2 to May 3, and March 24 to March 27.
