Toyota manufacturer shuts production plant in Pakistan owing to import hurdles

KARACHI: Indus Motor Company Limited (IMC) has announced temporary shutdown of its product plant due to import hurdles and delay in clearance of consignments. 

The automaker has announced the closure for six days started from today (June 3) to June 8, 2023 as it has set a letter to the Pakistan Stock Exchange in this regard. 

The IMC in a letter to the PSX said: “The company and its vendors continue to face hurdles on import raw materials and receiving clearance of their consignments, on account of challenges in the opening of LCs [letter of credit] and supply issues by certain foreign vendors."

"This has disrupted the supply chain of the company and the vendors are unable to supply raw materials and components to the company," the letter stated.

It said the company was unable to continue the production due to insufficient inventory levels.

The decision comes a day after the IMC officials called on Prime Minister Shehbaz Sharif. Last time, the IMC shut down its production plant for a few days in the previous month.

Indus Motors, Pak Suzuki Motors, and Honda have also faced several days of shutdown in recent months due to import curbs imposed by the government due to shortage of dollars.