Indus Motor Company (IMC), an assembler of Toyota brand automobiles in Pakistan, has announced that it will completely shut down its production plant from December 20 to December 30 due to delays in approving imports.
In a notice sent to the Pakistan Stock Exchange (PSX) on Monday the carmaker company has said that the State Bank of Pakistan (SBP) through a circular in May had introduced a mechanism to obtain prior approval for import of completely knocked down (CKD) kits and passenger car components (HS code 8703 category) for the auto sector.
The company also stated that the delay in the aforementioned approvals for the company and its vendors has created hurdles in the approval of imports and consignments for the company’s raw materials and components.
“This has resulted in inadequate inventory levels and therefore adversely impacted the supply chain and production activities,” the company said in the notice. It also added that it was unable to continue its production activities.
“In light of the above reasons, the company has decided to completely shut down its production plant from December 20, 2022 to December 30, 2022 (including both days). “
Pakistan’s auto industry which is heavily dependent on imports is caught in an exchange rate crisis as the State Bank of Pakistan has imposed restrictions on opening letters of credit (LCs) following the devaluation of the rupee.
Last month IMC officials had said at a corporate briefing session that import restrictions had been imposed by the central bank and the continued depreciation of the rupee was hurting the country’s auto sector.
