March 21, 2023 (MLN): Hinopak Motors Limited (PSX: HINO), one of Pakistan's leading automobile manufacturers will shut down its Chassis Assembly plant from March 24, 2023, to April 04, 2023, as the company is facing hurdles in opening Letters of Credit (LCs) for the import of Completely Knocked Down (CKD) kits and other raw materials, the company's filing on PSX said today.
The current economic situation in Pakistan has led the State Bank of Pakistan (SBP) to advise commercial banks to prioritize and facilitate imports to essential sectors only, which unfortunately does not include the auto sector.
This has left HINO with no choice but to suspend production activities for the time being.
The temporary shutdown will affect the company's ability to produce and supply commercial vehicles to the market, which could lead to a potential shortage of commercial vehicles in the coming weeks.
This could have a knock-on effect on the country's transportation and logistics industry, which relies heavily on commercial vehicles.
