The Pakistani automaker Indus Motor Company (IMC), which assembles Toyota autos, said that it will shut down its entire production facility from December 20 to December 30, claiming difficulties with import permission delays.
According to the firm, a method for getting prior clearance for the import of Completely Knocked Down (CKD) kits and equipment of Passenger vehicles (HS Code 8703 category) for the auto industry was introduced by the State Bank of Pakistan (SBP) in May via a circular.
“(However) the delay in aforesaid approvals for the company and its vendors has created hurdles in import and clearance of consignments for raw materials and components of the company,” The Company has stated in a notice.
“In the light of the above, the company has decided to completely shut down its production plant from December 20, 2022, to December 30, 2022 (both days inclusive),” Company also added.
The country’s massively import-dependent car sector is currently experiencing a currency crisis as a result of SBP limits on Letters of Credit opening following continuous rupee devaluation (LCs).
IMC officials stated at a business briefing session last month that the central bank’s import restrictions and the continued depreciation of the rupee are hurting the nation’s car industry.
At the time, officials stated that the sector is struggling with rising manufacturing costs as a result of the rupee’s devaluation, while demand has decreased as a result of the recession’s impact on the economy, high lending rates, and increased tariffs and taxes on automobiles.
They demanded that import limitations be lifted because the car industry only accounts for 3% of the entire import expenditure. IMC also stated in August that its production facility would be temporarily closed from September 1, 2022, until September 16, 2022.
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