IMC and MTL announce shutdown, Toyota assemblers intimated the Pakistan Stock Exchange about the closure of plant from Sept 1-16 due to parts shortages caused by import restrictions.
The auto sector has suffered immensely due to import restrictions and regulatory duties. IMC and MTL announce shutdown, The crisis deepened as Indus Motor Company (IMC) and Millat Tractor Limited (MTL) announced production shutdown on account of part shortages and delivery delays caused by the country’s flood catastrophe. Toyota assemblers intimated the Pakistan Stock Exchange about the closure of plant from Sept 1-16 due to parts shortages caused by import restrictions.Previously, IMC halted its operations and announced closure from Aug 1-13 ascribing it to the State Bank of Pakistan’s mechanism, vide EPD Circular No. 09 of 2022 dated May 20, 2022, for the auto sector to seek prior approval for importing completely knocked down (CKD) kits and parts of passenger cars. Currently, over 4000 employees are working for IMC.
During non-production days, contractual and daily wage workers are typically laid off from assembly lines. Upon inquiring the matter, IMC Chief Executive Officer Ali Asghar Jamali told Dawn that they have not offloaded any contractual and daily wage workers in the wake of NPDs and even have no plans to do so in the near future. In a stock exchange filing, IMC and MTL announce shutdown, the business stated that the delay in permits for the clearing of import consignments had caused difficulties, resulting in a considerable reduction in parts availability which adversely impacted supply chain and production operations. Millat Tractors also announced in a separate notice that it will suspend its production operations from Wednesday, August 31, 2022, until September 16, 2022, citing an inventory shortage. The company stated that tractor deliveries have been hampered due to damaged road infrastructure caused by the severe floods that have ravaged Pakistan Pakistan’s auto industry is heavily dependent on imports due which it is facing major challenges in the midst of an exchange-rate crisis, and restrictions imposed by the SBP on the opening of Letters of Credit (LCs).
Source: This news is originally published by globalvillagespace