Pak Suzuki Motor Company Limited has halted operations at its plant due to the government’s refusal to release completely knocked down (CKD) kits currently held at the port, the company’s Head of Corporate Affairs told Raised by Numbers.

The CKD kits have been stuck at the port for the past 45 days, resulting in significant financial strain for Pak Suzuki. The company is incurring millions of rupees in detention and demurrage charges, while the government is losing out on taxes and duties due to the lack of production and sales.

He highlighted that the Pakistan Automotive Manufacturers Association (PAMA), the Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM), and the entire industry have urged the government to adhere to Auto Policy 2021-2026. Failure to do so, they warn, could deter new investors and exacerbate the challenges faced by existing foreign direct investors in the automotive sector.

The shutdown has also had a ripple effect on local parts manufacturers, many of whom have already laid off thousands of employees due to the halt in production at Pak Suzuki’s plant.

The industry is calling for immediate government intervention to resolve the issue and prevent further economic fallout.