Pak Suzuki and Honda, two of the largest automobile manufacturers in Pakistan, have announced the suspension of their production activities once again. The decision has been taken in the wake of the ongoing global semiconductor shortage, which has severely impacted the supply chain for automobile manufacturers worldwide.
Honda Atlas had initially shut down its plant on March 8 and it was expected to end on March 31. However, the automaker later extended the shutdown to April 30th. It is the longest halt in the company’s history.
Separately, Pak Suzuki also announced in a notice that it was extending its motorcycle plant shutdown till April 28 citing inventory shortages.
The company had already been observing non-production days for the two-wheelers since March 20. It had also announced that its automobile plant would halt production on April 7 and 14 due to low inventory levels.
To fulfil its obligations for imports and other external payments, the nation still lacks the critical amount of money. The foreign exchange reserves of the central bank currently total little over $4.03 billion, hardly enough to cover a month’s worth of necessary imports.