Karachi: Hinopak Motors Limited (HINO) become latest automaker to shut operations on temporary basis as it faces consequences of government’s import restrictions and struggles to continue production.

Hinopak, which assembles and manufactures Hino buses and trucks, shared development in notice to Pakistan Stock Exchange (PSX).

“Considering current economic situation of Pakistan, whereby commercial banks have been advised by State Bank of Pakistan to prioritise/facilitate imports to essential sectors only, which does not include auto sector. Consequently, company has been facing hurdles in opening of LCs for import of CKDs and other raw materials,” read notice. “Accordingly, company is not in position to continue with its production activities and has to temporarily shut down its chassis assembly plant from March 24, 2023 to April 4, 2023,” it added.

Pakistan’s auto industry, highly dependent on imports has been caught in midst of crisis, as SBP after unabated rupee depreciation imposed restrictions on opening of LCs. Industries are facing hindrances in operations as country’s reserves remained low.

Published in The Daily National Courier, March, 22 2023

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