Two leading automotive companies in Pakistan, Honda Atlas Cars and Pak Suzuki Motor Company (PSMC), have declared a temporary cessation of production due to critical shortages in essential raw materials, as detailed in reports from The News on Thursday. PSMC has specified a shutdown period from October 25 to October 27, 2023, exclusively affecting their automobile production, whereas Honda Atlas Cars anticipates a halt from October 24 to October 31, 2023. These interruptions reflect the larger, ongoing crisis in Pakistan’s automobile sector, exacerbated recently by Indus Motor Company Limited’s (IMC) decision to suspend production for a full month.
Broader Industrial Strain Due to Raw Material Shortages
The predicament extends beyond the automobile industry, touching various sectors reliant on imported raw materials. These industries face similar disruptions, leading to periodic shutdowns that put additional pressure on the strained supply chain. The root cause is primarily the country’s low foreign exchange reserves, complicating the opening of letters of credit for imports and causing widespread disturbances in the supply chain. This situation necessitates urgent collaboration between industry stakeholders and the government to devise sustainable solutions. Experts emphasize the need for immediate and cooperative strategies to ensure the resilience and continued productivity of Pakistan’s automotive and associated industries.