Pak Suzuki Motor Company (PSMC) announced Thursday that it had halted motorcycle bookings until further notice due to issues with manufacturing and procurement following the consecutive closures of its vehicle assembling factories caused by an ongoing inventory crisis.
The manufacturer announced that the suspension of reservations would begin on Friday.
“Under the present economic circumstances, import-based supply chain constraints and uncertain production possibilities, we are unable to serve new customers,” the company said in a letter to dealers.
“We will, therefore, stop bookings of our motorcycle products from January 20, 2023, for the time being. However, bookings will resume as the situation becomes favourable to serve fresh customers.”
Pakistan’s economy has crumbled alongside a simmering political crisis, with the rupee plummeting and inflation at decades-high levels, but devastating floods and a global energy crisis have piled on further pressure.
Almost all industries, including the automotive sector, have been slowed down by a lack of imported components and materials, and an alarmingly large number of businesses have been forced to cease operations.
As Pakistan struggles with a dire foreign exchange crisis, thousands of containers filled with necessary food products, raw materials, and medical equipment have been held up at Karachi port.
A shortage of crucial dollars has left banks refusing to issue new letters of credit for importers, hitting an economy already squeezed by soaring inflation and lacklustre growth.
Pakistan’s forex reserves held with the State Bank of Pakistan (SBP) dropped to $4.6 billion — enough to cover barely four weeks’ worth of imports.
The government has also restricted several imports to save dollars, and some businesses have shut down as a result of being unable to import machinery or parts.
