ISLAMABAD, AUGUST 8: The Head of Corporate Affairs at Pak Suzuki Motor firm Limited told Bloom Pakistan earlier today that the firm has closed its facility because the government would not release fully knocked down (CKD) kits that were awaiting release at the port.
The company’s CKD kits have been stranded at the port for the past forty-five days. As a result, not only is Pak Suzuki paying millions of rupees in demurrage and detention fees, but the government is also not getting any taxes or duties because there isn’t any sales or production.
According to an official representing the automakers, the government has been requested by the Pakistan Automotive Manufacturers Association (PAMA), the Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM), and the industry as a whole to adhere to Auto Policy 21-26. Failure to do so will result in the exclusion of new investors and the continued precarious position of current foreign direct investors, or auto manufacturers.
According to him, the lack of production at the plant has resulted in thousands of employee layoffs at other local manufacturers of parts.
