Within four days, two major motor car companies closed down their business. First Millat Tractor company closed down its business, and after four days, the makers of Toyota in Pakistan, Indus Motors also announced to shut down their business from 20th December to 30th December.
The company stated that they are closing down because of the non-issuance of Letters of Credit (LCs) and restrictions on the import of auto parts.
Indus Motors sent a notice to the Pakistan Stock Exchange in which they mentioned that the State Bank of Pakistan has a new mechanism, according to which the companies need approval before importing kits and components of passenger cars from other countries.
They further added that these restrictions have created hurdles in the effective functioning of the company, and affected the supply chain production activities.
Indus Motors’ notification stated “the company is unable to continue its production activities. In light of the above, the company has decided to completely shut down its production plant from December 20, 2022, to December 30, 2022 – both days inclusive.”
Analysts suggest that this condition will negatively impact the economic growth of the country and may result in unemployment on a large scale.