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Pakistan’s Toyota manufacturer shuts down plant for two weeks

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  • Plant will be completely shut down from July 21 to August 3.
  • Company faces significant hurdles in importing raw materials.
  • It isn’t only automotive manufacturer affected by raw material scarcity.

KARACHI: Indus Motor Company Limited, a prominent player in Pakistan’s automotive industry and the manufacturer of Toyota vehicles, has temporarily closed its production plant for two weeks, The News reported Friday.

The decision comes as the company faces significant hurdles in importing raw materials, leading to disruptions in its supply chain.

Last month, Indus Motors experienced a brief shutdown of its production plant due to similar challenges with raw material imports.

However, the current situation has worsened, leaving the company with insufficient inventory levels to sustain its production activities.

The company secretary of Indus Motor released a statement to the Pakistan Stock Exchange, outlining the difficulties the company and its vendors are facing in importing raw materials and clearing consignments.

These challenges are primarily due to issues with opening letters of credit (LCs) and supply problems from certain foreign vendors.

As a result of these obstacles, the company has no choice but to halt its production activities temporarily.

The plant will be completely shut down from July 21, 2023, to August 3, 2023. Indus Motors is not the only automotive manufacturer affected by raw material scarcity.

Other prominent companies like Pak Suzuki Motors and Honda Cars have also experienced several shutdown days in recent months due to similar issues.

The automotive sector, along with other industries reliant on imported raw materials, has been grappling with these challenges due to a shortage of foreign exchange reserves in Pakistan.

The struggle to open LC has severely impacted the smooth functioning of the supply chain, leading to disruptions in production activities.

Indus Motors has a significant presence in Pakistan’s automobile industry and has invested $100 million in local production of hybrid electric vehicles (HEVs).

The company has played a crucial role in establishing the local automotive ecosystem, with over 50 part manufacturers contributing to the value chain by producing parts worth over Rs250 million every working day.

Additionally, the company has established 53 independently owned authorised dealerships that provide aftersales service to customers, generating employment opportunities for over 450,000 people directly and indirectly across Pakistan.

The temporary closure of the production plant presents challenges for the company, its employees, and the overall automobile industry.

The management of Indus Motor Company Limited is likely to be exploring solutions to address the raw material scarcity and resume operations as soon as the situation allows.

One analyst said the government and relevant stakeholders may also need to collaborate to find long-term solutions to ensure a stable supply of raw materials for the automotive and other affected industries.

Swift action and strategic measures will be essential to mitigate the impact of these closures on the economy and preserve the growth trajectory of Pakistan’s automotive sector.

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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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