KARACHI: Indus Motors Company (IMC), maker of Toyota vehicles has decided to shut down its production plant in country from December 20-30, citing delay in import approvals from State Bank of Pakistan (SBP).

In letter addressed to general manager of Pakistan Stock Exchange, IMC management said that central bank had introduced new mechanism for obtaining prior approval for import of ‘CKD kits and components of passenger cars (HS Code 8703 Category)’ for auto sector. “Aforesaid delay in approvals for company and vendors has created hurdles in import and clearance of consignments for raw materials and components of company.

“This has resulted in insufficient inventory levels and consequently has created an adverse impact on supply chain and production activities,” letter stated. Assemblers said that decision had been causing delay in payments to foreign suppliers thus creating huge business risk for local industry.

They said development activities for various new models were in process across industry. For new technology vehicles and parts development, assemblers and vendors need to import machinery, molds, tools and fixtures.

Published in The Daily National Courier, December, 20 2022

Like Business on Facebook, follow @DailyNCourier on Twitter to stay informed and join in the conversation.