Due to the economic slowdown and import limitations, Pakistani automakers are having trouble, which has a negative impact on sales and profitability. Pakistan Suzuki Motor Company is one of the businesses that has been adversely impacted by these difficulties.
The most recent information from Pak Suzuki states that due to a lack of inventory, the motorbike assembly plant would be closed from June 12 to June 16. The business had previously stopped producing motorcycles from May 23 to June 10.
The main justification offered by the corporation is the difficulties in importing the raw materials and parts required for the production of vehicles. This problem results from the State Bank of Pakistan’s requirement for import approvals. For auto businesses, the procedure has resulted in delays and disruptions in the supply chain.
The need for prior approval may not appear to be a significant barrier in theory, but in practise, it can lead to shortages of raw materials and parts because of delays in the licencing process. This is a typical problem that many government agencies encounter. Due to the delays, it has become difficult to keep adequate inventory levels for production.