Karachi: Honda Atlas Cars Pakistan Ltd. on Friday announced a 15-day extension to the huge plant shutdown to date, citing Pakistan’s current economic crisis, the ban on opening letters of credit for imports, and halting foreign payments.
The Honda company announced the early shutdown on March 8, which was expected to end on March 31.
Honda company stance
Honda company has said economic issues in Pakistan have impacted its supply chain. “As a result, the company isn’t in a position to continue with its production and ultimately has continued to shut down its plant from 01 April 2023 to 15 April 2023,” the Honda company, a unit of Japan’s Honda Motor Co Ltd, said in a notice to the Pakistan Stock Exchange.
Other listed-automakers, such as Pak Suzuki Motor Company and Indus Motor Company Limited, have also been forced to halt production for the last three quarters due to the country’s economic difficulties, which have seen central bank foreign exchange reserves drop to a level barely able to cover four weeks of imports.
