Karachi: The Pak Suzuki Motor Company (PSMC) on Monday, has announced to suspend its production for a short period due to foreign exchange crisis in the country and non-opening of LCs for the import of raw materials.
Audio: Mashhood Ali Khan
We at Daynewstv spoke to Mashhood Ali Khan, former chairman of Pakistan Association of Automotive Parts & Accessories Manufactures (PAAPAM) on the subject.
He expressed great concerns and said that “the government had given incentives to the automotive sector, but due to rapid depletion of foreign exchange reserves, the government was forced to ban CKD imports as well.”
According to industry experts, the year 2023 will prove to be the most difficult year for the auto industry. In the last 50 years in Pakistan, unfortunately, no substantial progress has been made in the production of raw materials of the car manufacturing sector.
He revealed that if other products including raw materials and metal sheets were available in Pakistan, the situation would have been slightly different at that time.
He said that the coming year will add to the difficulties for consumers including the auto industry. The former chairman of PAAPAM, said the government would have to take steps on an emergency basis to resolve the issue so that the confidence of the local investor is restored before the foreign investor.
He further said that if any positive step is taken today, it will take more than two years for its results to come, and if the government remains silent in the same way, not only will foreign investors leave Pakistan, but local investors will also be forced to move their capital abroad due to distrust.
Earlier, Indus Motors had also announced suspension of its production activities for 10 days due to the problems of LCs and non-import of raw materials.