Pak Suzuki Motor Company (PSMC) announced on Thursday that it would not be booking motorcycles until further notice due to issues with procurement and production following back-to-back plant closures as a result of an ongoing inventory shortage.
The automaker stated that the booking suspension would take effect on Friday.
In a letter to dealers, the company stated, “Under the current economic conditions, import-based supply chain constraints, and uncertain production possibilities, we are unable to serve new customers.”
As a result, bookings for our motorcycle products will cease effective January 20, 2023. However, bookings will resume as soon as the conditions improve for serving new customers.
The rupee has fallen, inflation has reached decades-high levels, and Pakistan’s economy has collapsed alongside a simmering political crisis. However, devastating floods and a global energy crisis have added additional stress.
A shockingly high number of businesses have been forced to cease operations as a result of a lack of imported parts and materials. This has slowed almost all industries, including the auto industry.
As Pakistan struggles with a desperate currency crisis, thousands of containers containing essential food items, raw materials, and medical supplies have been held up at the Karachi port.
Banks are refusing to issue new letters of credit to importers because they don’t have enough crucial dollars, which hurts an economy already hurt by high inflation and slow growth.
The State Bank of Pakistan (SBP) has reduced Pakistan’s forex reserves to $4.6 billion, just enough to cover four weeks’ worth of imports.
In an effort to save money, the government has also placed restrictions on a number of imports, and as a result, some businesses have had to close their doors.
