Pak Suzuki Suspends Production Amid Government Restrictions
— August 8, 2024
Karachi (AIA) Pak Suzuki Motor Co. Ltd. has been forced to shut down its plant after the government refused to release its Completely Knocked Down (CKD) kits from the port, a critical component needed for assembling vehicles. The kits have been lying idle for 45 days, leading to billions of rupees in detention and demurrage charges and severely disrupting production.
Shafiq Ahmed Shaikh, Head of Corporate Affairs at Pak Suzuki, criticized the government’s actions, stressing that the lack of production and sales has resulted in lost tax revenue. “The government is not receiving any taxes and duties due to no production and sales,” Shaikh stated.
The auto industry has urged the government to adhere to the auto policy 2021-26, warning that failure to do so could deter new investors and put existing ones in a critical situation. This situation has sparked concerns about the government’s support for the industry and its impact on the economy.
Pak Suzuki’s shutdown is a major blow to the automotive sector, coming on the heels of the company’s recent price hike of Rs. 304,000 for its Swift GLX CVT model due to a 25% sales tax. The move has left consumers and stakeholders reeling, highlighting the urgent need for a resolution to the ongoing crisis
Karachi
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