Import curbs pressure Haval producer to shutdown plant
- Plant operations to stay suspended from Feb 27 to March 4.
- Three-wheeler vegetation will stay in operation.
- Automotive business faces hardships on account of non-import of uncooked supplies.
KARACHI: Sazgar Engineering Works Restricted, one in all Pakistan’s main auto manufacturers, introduced it was shutting down its four-wheeler automobile plant for per week blaming the federal government’s measures to minimise the imports, The Information reported Saturday.
In line with a press release issued by the car firm, the plant operations will stay suspended from February 27 to March 4 owing to the uncooked materials scarcity.
The corporate cited the federal government’s stringent measures of minimising imports amid depleting overseas change reserves as a serious cause for the momentary shutdown.
“Because of the authorities’s stringent measures of minimising the import of CKD and uncooked materials of autos, the corporate’s provide chain has been disrupted and thereby the corporate has determined to close down its automobile plant (four-wheeler plant) from February 27, 2023, to March 04, 2023,” it mentioned in a press release to the Pakistan Inventory Change (PSX).
Nevertheless, its three-wheeler and automotive elements manufacturing vegetation will stay in operation in the course of the mentioned interval.
Sazgar launched Pakistan’s first hybrid car Haval in November 2022, which used the Chinese language CKD and sub-assembly plant, a transfer that was seen as a major milestone for the corporate in addition to for the Pakistani automotive business.
The present scenario is just not distinctive to Sazgar solely, as many different main auto producers, together with Indus Motors and Pak Suzuki Motors, are additionally dealing with hardships as a result of non-import of uncooked supplies. In consequence, they’re engaged on shorter working days.
The decline in Pakistan’s overseas change reserves has been cited as the first cause for the disaster being confronted by the auto manufacturing business. The curbs on uncooked materials imports have additional compounded the scenario, resulting in a scarcity of supplies and elements needed for the manufacturing of autos.
The scenario is regarding for the automotive business in addition to the federal government, because the sector is a major contributor to the nation’s economic system.
Though the federal government is attempting its finest to extend the overseas change reserves and has adopted strict measures within the mini-budget to appease the Worldwide Financial Fund (IMF) and get the bailout programme operating.