HomePakistanToyota maker closes Pakistan production plant due to import hurdles

Toyota maker closes Pakistan production plant due to import hurdles

KARACHI: Indus Motor Company Limited (IMC) has announced the temporary closure of its product plant due to import obstacles and delays in clearing shipments.

The automaker has announced the shutdown for six days from today (June 3) to June 8, 2023 as it has sent a letter to the Pakistan Stock Exchange regarding the matter.

The IMC in a letter to PSX said: “The company and its suppliers continue to face obstacles in importing raw materials and receiving authorization for their shipments, due to challenges in opening LC (letter of credit) and problems of supply by certain foreign sellers”.

“This has disrupted the company’s supply chain and suppliers are unable to supply raw materials and components to the company,” the letter said.

He said the company was unable to continue production due to insufficient inventory levels.

The decision comes a day after IMC officials called Prime Minister Shehbaz Sharif. The last time, the IMC closed its production plant for a few days in the previous month.

Indus Motors, Pak Suzuki Motors and Honda have also faced several shutdown days in recent months due to government-imposed import restrictions due to dollar shortages.

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