Car manufacturers in Pakistan are facing difficulties due to the economic downturn and import restrictions, resulting in lower sales and profitability. Pakistan Suzuki Motor Company is one of the companies greatly affected by these challenges.
In the latest update, Pak Suzuki has announced that its motorcycle assembly plant will remain closed from June 12 to June 16 because of a shortage of inventory. Previously, the company had already halted motorcycle production from May 23 to June 10.
The main reason cited by the company is the difficulty in importing necessary parts and raw materials for vehicle manufacturing. This difficulty arises from the mandatory approval process imposed by the State Bank of Pakistan for imports. The process has caused delays and disruptions in the supply chain for automobile companies.
Although the requirement for prior approval may not seem like a major obstacle in theory, the practical implications include shortages of parts and raw materials due to delays in the approval process. This is a common issue faced by many government departments. As a result, the delays have made it challenging to maintain sufficient inventory levels for production.
