auto news desk, The economic crisis is getting deeper in Pakistan. Due to this, companies are shutting down one after the other. Now a new case of car company Honda Atlas Cars Pakistan (HACP) has come to light. The company has announced the closure of its plant in Pakistan. According to the company, it has been forced to close its plant due to the devaluation of the Pakistani rupee and high tax burden.
This decision had to be taken due to supply chain being affected
The automaker, in a notice sent to the Pakistan Stock Exchange, said that the decision to close the plant has been taken due to disruption in the company’s supply chain. Let us tell you that at this time Pakistan is facing a serious economic crisis. To get out of this, the government there took several tough steps including banning CKD (Completely Knock-down) kits, LC (Letters of Credit) and stopping foreign payments for the import of raw materials.
Auto sector surrounded by serious crisis
Experts say that the auto sector of Pakistan is surrounded by a serious crisis at this time. Several automakers have announced complete or partial shutdowns in recent months citing various reasons including low market demand and company’s inability to maintain inventory. Toyota Motors, Pakistan Suzuki and some two-wheeler manufacturers have shut down their plants from time to time.