Indus Motor to shut down plant till Feb 14

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KARACHI: Indus Motor Company Limited (INDU), the maker of Toyota vehicles, said it will completely shut down its plant from February 1 to February 14, citing inventory shortage.

In a letter addressed to the general manager of the Pakistan Stock Exchange, the IMC management said that in light of the recently introduced mechanism vide EPD Circular No. 20 of 2022 dated December 27, 2022 (effective from January 2), commercial banks were advised to priorities/facilitate the imports to specified sectors only, which does not include auto sector.

When the company restarts production on February 15, it will do so on a single-shift basis until further notice, stated a communication issued to the Pakistan Stock Exchange (PSX) on Tuesday.

Indus Motor said the company and its vendors continue to face major hurdles in import of raw materials and receiving clearance of their consignments from commercial banks.

The Toyota manufacturer mentioned that these laggards have disrupted the entire supply chain and the vendors are unable to supply raw materials and components to the company.

Following a major loss of the Pakistani rupee against the US dollar a few days ago, Indus Motor raised the prices of their cars by as much as Rs1.16 million for the second time in two weeks.

With effect from January 2, 2023, the central bank decided to remove the import restrictions that had been in place. According to the SBP, Authorized Dealers (ADs) may priorities or facilitate imports under the following categories: imports of essential goods, imports of energy, imports by industries with a focus on exports, imports of inputs for agriculture, imports with a deferred payment or self-funded financing structure, and imports for export-oriented projects that are almost finished.

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