KARACHI:
Indus Motor Company (IMC) has announced a six-day shutdown of its production plant owing to the shortage of auto parts and components.
In a notice sent to the Pakistan Stock Exchange (PSX) on Wednesday, the automaker said that production would remain suspended from March 6 to 11.
“Based on the current low level of inventory of manufactured vehicles, and shortage of parts and components for the manufacturing of vehicles due to supply chain challenges, the company has decided to close its production plant from March 6 to 11. In case of any change in plan, it will be updated accordingly,” the company said.
Earlier too, the company has closed its plant multiple times in the backdrop of inventory challenges faced over the past around one year. “It does not augur well if an automaker closes its production plant for a week. A new but experienced government has come to power and it must announce an industrial policy forthwith with a view to promoting industrialisation, generating jobs and controlling inflation,” auto sector expert Mashood Khan said while sharing his views with The Express Tribune.
“The coming budget will be a test case for the new government to see as to how much relief it is able to provide for the inflation-ridden people,” he said. Khan emphasised that the government must take some austerity measures while cutting down luxurious expenses at government offices and stopping imports of luxury goods and cars.
He pointed out that instead of opening new small and medium-sized enterprises (SMEs), many existing units were closing down because of the skyrocketing energy cost. “If the industry is not promoted and facilitated, the government will find it difficult to collect revenue to run the affairs of the country in a smooth manner.”
Other market pundits said rising inflation had broken the back of the people and hit their purchasing power to a great extent. They said that auto sales could remain lacklustre during Ramazan and would pick up after Eidul Fitr.
Published in The Express Tribune, March 7th, 2024.
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