Pak Suzuki Motor Co Limited extended its motorcycle plant shutdown for another week due to an inventory shortage. Originally set to reopen on June 10 after an initial closure starting May 23, the plant will remain shut until June 16.
According to a statement to the Pakistan Stock Exchange, the ongoing shortage of raw materials led to this decision. Company secretary Abdul Nasir clarified the car manufacturing plant would continue operations during this period.
This is not the first time Pak Suzuki had to cease operations; in May, motorcycle and car plants were shut for over a week. The raw material shortage has troubled the company since last July, chiefly due to challenges importing key components from dwindling forex reserves.
Pak Suzuki is not alone; Indus Motor Company and Honda Atlas Cars also faced shutdowns recently due to similar issues. The shortage even forced automotive part manufacturers to halt their production lines temporarily.
This crisis affects the companies, the entire automobile sector, and other industries, struggling with non-productive days due to delayed letter of credit openings for raw material imports. The resulting reduced operational capacity and productivity decrease impact various economic sectors.
Pak Suzuki’s latest closure has caused alarm among employees, stakeholders, and the public. The motorcycle plant, a significant division and major employer, is feared to impact the workforce and economy significantly. An analyst stressed the need for stakeholders and policymakers to address the root cause of the raw material shortage and find long-term solutions to prevent future disruptions.
