Honda Atlas Cars Pakistan Ltd on Thursday announced a 15-day extension to its longest plant shutdown this fiscal year, citing the country’s economic crisis, restrictions on opening letters of credit for imports, and halting foreign payments.

The company announced an initial 23-day shutdown on March 8, which was expected to end on March 31. It then extended the shutdown to April 15.

Honda says the government’s stringent measures to deal with Pakistan’s economic situation have “severely disrupted” the company’s supply chain.

In a notice to the Pakistan Stock Exchange, the company, a unit of Japan’s Honda Motor Co Ltd said:

“As a result, the Company is not in a position to continue with its production and ultimately has continued to shut down its plant from April 16, 2023 to April 30, 2023.”

Other listed automakers in the country, such as Indus Motor Company Limited and Pak Suzuki Motor Company, have also been forced to halt production during the last fiscal year due to Pakistan’s economic difficulties, which have seen central bank foreign exchange reserves drop to a level barely able to cover a month’s imports.

Also on Thursday, Pak Suzuki Motor Company Ltd (PSMC), a unit of Japan’s Suzuki, announced a 13-day extension to an existing halt in its production of motorcycles.

On March 16, it announced an 11-day plant shutdown for its motorcycle plant, citing a shortage of inventory. It later extended the shutdown by 15 days to April 15.

PSMC shut down automobile production for a week from April 7 to April 23 for the same reasons.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

System failure
Updated 12 Nov, 2024

System failure

Relevant institutions often treat right to internet connectivity with the same disdain as they do civil and political rights.
Narrowing the gap
12 Nov, 2024

Narrowing the gap

PERHAPS a pat on the back is in order for the ECP. Together with Nadra, it has made visible efforts to reduce...
Back on their feet
12 Nov, 2024

Back on their feet

A STIRRING comeback in the series has ended Pakistan’s 22-year wait for victory against world champions Australia....
Time to deliver
Updated 11 Nov, 2024

Time to deliver

Pakistan must display a serious commitment to climate change adaptation and mitigation at home.
Smaller government
11 Nov, 2024

Smaller government

THE IMF bailout programme has put the government under pressure to curtail its spending, especially current...
Unsafe inheritance
11 Nov, 2024

Unsafe inheritance

DESPITE regulations, the troubling practice of robbing women of their rightful inheritance — the culprits are ...