August 09, 2024 (MLN): Pak Suzuki Motor Co. Limited has halted its manufactured plant in Karachi due to a major delay in its approval of Completely Knocked Down (CKD) kits on the port.
According to media reports, the company’s CKDs have been lying at the port for the last 45 days, resulting in a significant financial burden due to detention and demurrage charges amounting to billions of Rupees.
The strain caused by the approval restriction has exposed PSMC to a substantial shortage of kits, forcing it to shut down its operations.
These reports further highlighted that automobile associations have urged the government to adhere to the auto policy for 2021-2026.
This is because continued delays approval of inputs could harm Pakistan's auto sector and send negative signals to potential foreign investors.
It is worth mentioning that this negative situation follows the company's recent expansion into exporting vehicles to Bangladesh and Afghanistan.
Pak Suzuki's CEO, Hiroshi Kawamura, announced the inauguration of the Suzuki Vendor Cluster Area.
In a recent update, Pakistan Credit Rating Agency Limited (PACRA) has maintained entity ratings of Pak Suzuki Motor Company Limited (PSMC) at "AA-" for long term and "A1" for short term with a stable outlook forecast.
The credit rating agency said that ratings reflect a vigorous business profile represented by its prominent position among the established auto OEMs in Pakistan.
The ratings are further supported by the foreign sponsor, Suzuki Motor Corporation, Japan (SMC-Japan), which extends comprehensive support to the company.
