ISLAMABAD: Hinopak Motors Limited has become the latest automaker to temporarily shut operations in Pakistan as it faces the results of the government’s import restrictions and struggles to keep production on.
Hinopak, which manufactures and assembles Hino trucks and buses, shared the decision in a Tuesday notice to the Pakistan Stock Exchange.
It said in the notice that considering the economic situation of Pakistan, whereby the State Bank of Pakistan has advised the commercial banks to prioritize and facilitate the imports to essential sectors only, which excluded the auto sector. Resultantly, the company has been facing difficulties opening Letters of Credit to import CKDs and other raw materials.
It added that the company could not continue its production activities and is temporarily shutting down its chassis assembly plant from 24 March 2023 to 4 April 2023.
Pakistan’s auto industry, heavily dependent on imports, has been grappling with a crisis, as the central bank, after unabated rupee depreciation, decided to impose restrictions on opening LCs. Industries are facing hurdles in operations as the forex reserves remain low.
Ghandhara Tyre and Rubber Company Limited shut down operations
On Monday, Ghandhara Tyre and Rubber Company Limited, which manufactures and trades tubes and tyres for motorcycles and automobiles, said it would temporarily shut down production from 24 March to 3 April, citing supply chain disruptions.
