Ahmed Mukhtar Naqshbandi
ISLAMABAD/KARACHI: General Tyre & Rubber (GTR) has announced a series of non-production days (NPDs) for February 2023 due to the economic crisis and ongoing operational problems.
Tyre company pauses operations
An official notification states that the company could suspend production operations from February 13, 2023, to February 17, 2023, due to a shortage of inventory caused by an import ban imposed by the State Bank of Pakistan (SBP).
Auto Industry on the Brink of Extinction
Foreign exchange shortages and component supply issues are suffocating the local automobile industry.
Pakistan Association of Automotive Parts and Pakistan Automotive Manufacturers Association (PAMA), and Accessories Manufacturers (PAAPAM) sent a joint letter to the State Bank of Pakistan (SBP) Governor this month.
According to the letter, the industry is on the verge of extinction due to the SBP import ban and banks’ lack of cooperation with the auto industry. As a result, factories face intermittent closures while assemblers and suppliers lay off workers.
Citing information from the Pakistan Bureau of Statistics (PBS), the letter stated that the vehicles assembly kit imports decreased 38 per cent to 499 million dollars in the first half of the fiscal year 2022-23, compared to 808 million dollars in the same period of the last fiscal year.
This has resulted in massive sales and profit reductions for automakers and an inventory shortage. The letter warned if corrective action is not taken, this scenario could result in massive unemployment, a decline in government revenue, the closure of automobile assembly plants, and capital flight.
