Business

Honda Atlas, Pak Suzuki announce temporary shutdown of production plants

Published

9 months ago

Farwa

Pak Suzuki’s motorcycle plant to continue operations.
Vehicle plant shutdown to occur on Oct 25-27.
Honda Atlas to shut down from Oct 24-Oct 31.

KARACHI: Honda Atlas Cars and Pak Suzuki Motor Company (PSMC), the two major auto manufacturers in the country, have announced a temporary shutdown of production plants because of an ongoing shortage of essential raw materials, The News reported on Thursday.

“Due to the shortage of inventory levels, the management of the company has decided to shut down the automobile plant from October 25, 2023, to October 27, 2023. However, the motorcycle plant will continue its operations,” said the PSMC, in a statement issued by its company secretary.

A similar announcement was also made by Honda Atlas Cars through their company secretary.

“The current level of inventory and parts shortages within the company’s supply chain has severely disrupted operations. As a result, the company is unable to continue production and, consequently, will halt its plant from October 24, 2023, to October 31, 2023,” said the statement.

The shutdown by the automotive giants mirrors a broader issue that has been affecting Pakistan’s automobile sector for more than a year. Shortages in inventory levels have driven a cycle of temporary shutdowns across the industry.

Recently, the Indus Motor Company Limited (IMC) made headlines when it announced that it would be closing its production plant for an entire month, extending the impact of these supply chain challenges even further.

IMC’s month-long shutdown emphasises the extensive and far-reaching impact these issues have had on Pakistan’s industrial landscape.

According to The News, the problem is not confined to automobile sector.

A wide range of industries, including auto parts manufacturers, and companies reliant on imported raw materials, have been in a similar predicament. This forces the businesses to resort to periodic shutdowns, further straining the supply chain.

The ongoing shortage of essential raw materials is predominantly attributed to the scarcity of foreign exchange reserves in Pakistan. This challenge has resulted in a difficult process of opening letters of credit (LCs), hampering the ability to import crucial components.

As a consequence, the entire supply chain, from automobile manufacturers to their suppliers, faces severe disruptions, leaving them with no choice but to temporarily halt production.

Honda Atlas Cars and PSMC’s temporary shutdowns underscore the need to resolve supply chain issues for the stability and productivity of Pakistan’s automotive sector.

As per the publication, the stakeholders, along with the government, will need to work together to address the root causes and establish long-term solutions.

Analysts are of the view that swift action and cooperative strategies are essential to mitigate these disruptions and pave the way for a robust and resilient automotive industry.

Business

An investigation was “launched” into PTA’s inability to get Rs. 78 billion back from Telcos

Published

18 hours ago

Farwa

The PTA has reportedly been instructed to reply to NAB by July 29. According to the enquiry, the national exchequer has suffered losses as a result of the delay in collecting dues.

The PTA has been asked to provide NAB with information about any pertinent records, court proceedings, and overdue bills. The NAB Karachi has summoned the PTA officials to appear with all pertinent documentation.

All of the principle sum has to be paid by the LDI firms, according to sources. But due to judicial stay orders, the collection of dues has been impeded.

These sources further state that a steering group has been established by the Ministry of IT to supervise the issue of dues recovery.

In a previous event, the tariffs levied on importing cell phones from outside were clarified by the Pakistan Telecommunication Authority (PTA).

Contrary to what some internet reports claim, PTA clarified in response to recent news regarding the tariffs on mobile phone imports that there hasn’t been a formal decision to remove these levies in Pakistan.

the PTA.Pakistanis living abroad will be the only ones free from these levies, according to the PTA. A SIM card can be inserted and the phone restarted to temporarily register a device for non-PTA mobile subscribers.

Business

Weekly inflation in Pakistan increased by 0.17 percent.

Published

18 hours ago

Farwa

The SPI for the week under review in the aforementioned group was reported at 321.95 points, as opposed to 321.40 points during the previous week, according to the PBS statistics.

The SPI for the combined consumption group saw a 20.09 percent increase in the week under review compared to the same week the previous year.

The weekly SPI includes 51 necessary items for every spending group and 17 urban areas, with a base year of 2015–16 = 100.

The SPI for the lowest consumption category, which is up to Rs 17,732, grew by 0.08 percent from 311.97 points to 312.22 points this past week.

0.18 percent,The index of consumption for the lowest consumption groups, which are Rs 17,732-22,888, Rs 22,889-29,517, Rs 29,518-44,175 and above Rs 44,175; increased by 0.13 percent, 0.15 percent, 0.18 and 0.19 percent, respectively.

Nineteen (37.25%) of the fifty-one commodities had price increases over the week, eight (15.69%) had price decreases, and twenty-four (47.06%) had unchanged pricing.

On a weekly basis, the following commodities saw significant price decreases: tomatoes (9.19%), onions (2.14%), LPG (1.04%), bananas (0.53%), wheat flour (0.35%), potatoes (0.17%), pulse masoor (0.16%), and bread (0.05%).

Chicken (4.80%), garlic (2.01%), pulse gramme (1.87%), eggs (1.71%), beef (0.93%), gur (0.89%), pulse moong (0.84%), fresh milk (0.45%), firewood (0.23%), and cigarettes (0.12%) were among the items whose average prices increased significantly week over week.

The commodities that saw a year-over-year decline were: wheat flour (31.75%); cooking oil (13.44%); vegetable ghee 2.5 kg (10.42%); vegetable ghee 1 kg (9.85%); mustard oil (8.33%); eggs (5.82%); rice basmati broken (4.15%); and tea package (2.52%).

Gas prices for Q1 (570.00%), onions (96.01%), pulse gramme (40.39%), powered milk (39.11%), garlic (34.61%), pulse moong (29.77%), men’s sandals (25.01%), beef (23.52%), salt powder (23.28%), pulse mash (22.50%), and energy saver (17.96%) were among the commodities whose average prices increased year over year.

Business

The price of gold has drastically dropped in Pakistan.

Published

2 days ago

Farwa

As per the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the cost of 24-karat gold per tola decreased by Rs 2,300, standing at Rs 250,500.

A kilogramme of 24-karat gold costing Rs1,972 less at the local market, making it worth Rs2114,763. Ten grammes of 22-karat gold had a price decrease to Rs196,866 as well.

After losing a significant $43 during the day, the rate per ounce of gold on the international market also decreased. It currently stands at $2,370.

On Thursday, the price of 24-karat silver also experienced a decline, falling by Rs60 to settle at Rs2,860 petal.