Due to government import restrictions and difficulties in maintaining production, HINO (Hinopak Motors Limited), the most recent automaker, temporarily suspended operations.
Recently, the automaker, which assembles and produces Hino trucks and buses, shared the notice with PSX (Pakistan Stock Exchange).
The State Bank of Pakistan (SBP) has advised the commercial banks to prioritize/facilitate the imports to only essential sectors, which do not include the auto sector, in light of the current economic situation in Pakistan. The notice states that as a result, the company has encountered difficulties in opening LCs for the import of CKDs and other raw materials.
Therefore, the company is unable to continue with its production activities and will temporarily close its chassis assembly plant from the 24th of March 2023 to April 4, 2023, it continued.
Due to the State Bank of Pakistan’s limitations on LC opening and unabated depreciation of the rupee, Pakistan’s import-dependent auto industry is currently experiencing a crisis.
Due to Pakistan’s low reserves, businesses are having trouble operating.