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Pakistan: Honda shuts plant amid economic crisis

Just Earth News | @justearthnews | 09 Mar 2023, 09:04 pm Print

Pakistan: Honda shuts plant amid economic crisis


Islamabad: Honda Atlas Cars, the assembler of Honda automobiles in Pakistan, on Wednesday announced it will be shutting down the plant for the remainder of the month.

The company said it would not be able to continue production at present.

The automaker, in a notice sent to the Pakistan Stock Exchange, said that the decision has been taken as the company’s supply chain has been “severely disrupted", reports Geo News.

“Considering the current economic situation of Pakistan whereby the government resorted to stringent measures including restricting the opening of LCs [letter of credits] for import of CKD [completely knocked-down] kits, raw materials and halting foreign payments, the company’s supply chain has also been severely disrupted by such measures,” the company said highlighting all the reasons for the plant shutdown.

Consequently, it said that the company “is not in a position to continue with its production and ultimately has to shut down its plant from March 9 to March 31.”

The company took the decision at a time when Pakistan is witnessing one of the worst economic crisis.