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Honda Atlas, Pak Suzuki announce temporary shutdown of production plants

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  • 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.

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April FDI in Pakistan increased to $358.8 million, according to SBP

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The inflow for April was $358.8 million, up 177% from $132 million in April FY23. Still, that was 39% more than the $258 million from March.

China was the largest investor, with $439.3 million in FDI from the nation between July and April of FY24—the greatest amount—as opposed to $604 million during the same period of FY23. In April, China accounted for $177 million of the total investment.

With $51.93 and 51.89 million invested in Pakistan, the United Arab Emirates and Canada came in second and third, respectively.

The power industry was the main draw for foreign investors in FY24, which ran from July to April. This period’s FDI in the power industry was $637.5 million, compared to $776.2 million the previous year. From $338 million to $460 million this year, Hydel Power garnered more attention.

Continue reading: In FY23–24, Pakistan’s per capita income increased to $1680.

According to a separate data released on Wednesday, Pakistanis’ per capita income increased to $1680 in FY2023–2024.

The size of the national economy grew from $341 billion to $375 billion in the current fiscal year, according to figures made public by PBS.

Throughout this fiscal year, Pakistanis’ yearly per capita income increased by Rs 90,534; the monthly rise was Rs 7,544.

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OGRA forbids the purchase or sale of inferior LPG cylinders.

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The 313 LPG marketing and 19 cylinder-producing companies received notices from the OGRA, which described the act of refilling inferior LPGO cylinders as harmful.

Avoid supplying LPG to unlicensed distributors, the OGRA has cautioned LPG marketing companies. Only approved distributors will be able to sell and buy LPG going forward, per the notification, which states that new SOPs have been developed for the LPG industry.

Additionally, the warning said that the decision was made in an effort to preserve both lives and the business in response to an increase in cylinder blast occurrences.

Price reductions of Rs 20 per kilogramme for liquefied petroleum gas (LPG) were implemented in Quetta on May 3.

There is a reduction of Rs 20 on LPG prices, which means that the price per kilogramme drops from Rs 280 to Rs 260.

The costs of LPG were reduced by Rs 20 per kilogramme earlier, bringing the total decrease to Rs 40 per kilogramme over a few weeks. This is something worth noticing.

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PIA announces a significant student discount.

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According to an airline spokesman, the national flag carrier has recently raised the baggage allowance to 60 kg.

Currently, PIA flies one flight per week on Sundays between Islamabad and Beijing.

The discount may be useful to students who intend to spend their summer vacations in Pakistan or who wish to return home after earning their degrees.

Before, students who wanted to visit China could now receive a 27% reduction on their fares through PIA.

On Eid ul Fitr, the national flag airline also reduced the cost of domestic flights by 20% for both economy and executive economy classes.

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