The State Bank of Pakistan has delayed approving imports, according to Indus Motors Company (IMC), the company that manufactures Toyota vehicles, and it has decided to close its production facility in the country from December 20 to December 30. (SBP).
The IMC management stated in a letter to the Pakistan Stock Exchange general manager that a new procedure for taking prior clearance for importing manager of Pakistan Stock Exchange that a new procedure for obtaining prior clearance for the import of “CKD kits and components of passenger cars (HS Code 8703 Category)” for the auto industry had been introduced by the central bank.
The company stated in the notice that “(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 stated that it is unable to continue manufacturing because “This has resulted in insufficient inventory levels and consequently created an adverse impact on the supply chain and production activities.”
“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),” it added.
By delaying payments to international suppliers, according to assemblers, the decision has put the local economy in great danger.
They added that any further delays in the SBP’s approvals would prevent $80 million from being contributed to the exchequer. “These restrictions have so far stopped roughly $25 million in international payments from being processed, which has caused investors to lose faith in the Pakistani market.”
They asserted that the industry was now working on developing a number of new models. To produce new technology cars and components, manufacturers, suppliers, and assemblers must import machinery, moulds, tools, and fixtures. To enable the seamless development of local parts, testing tasks must be carried out months before the start of mass production.