Honda Pakistan temporarily closed down its plant till March 31 due to importing issues of raw materials and government restrictions. Less importing and high tax on imports caused knocking down of kits, raw materials and difficulty in international payments.
All the reasons caused disruption in supply chains and company is unable to continue its manufacturing in adverse manner, causing the closure of plant. In the notice of Pakistan Stock Exchange (PSX), the giant auto company of Pakistan announced this temporarily closure of plant.
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The notification stated that, “Considering the current economic situation where the government has resorted to stringent measures including restricting the opening of LCs for import of CKD kits, raw materials and foreign payments, the company’s schedule has been disrupted by these measures”.
In the result company is not abble to work and its production, purchasing and selling department is ckosed down from March 9 to March 31,2023.
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Pakistan is currently not in position to pay taxes on import or help any industry to continue its position in market. Government is trying hard to save foreign exchange and reduce the demand in market which is causing many auto industries to shut down.
Earlier, Pak Suzuki Motors also closed down its plant for around one and a half month from January 20th, 2023 to March 3, 2023. The company also announced, the closure of its two wheelers manufacturing plant.
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According to the latest data, Pakistan’s car sales came in 11,500 units in January, 37% down from last year due to unavailability of CKD kits.