Due to the economic crisis in Pakistan, companies are shutting down one after the other. Now news has come that Japan’s car maker company Honda has announced the closure of the plant located in Pakistan till 31 March. Earlier, Suzuki has also closed its plant in Pakistan.

Honda Atlas Cars, the assembler of Honda Automobiles in Pakistan, says, “The company will not be able to continue its production and is closing its plant from March 9 to 31.”

For these reasons the company decided to close the plant
The automaker sent a notice to the Pakistan Stock Exchange, stating that the company’s supply chain has been severely affected. The government of Pakistan resorted to stringent measures including ban on opening of Letter of Credit (LC) for import of Completely Knocked-down (CKD) kits, raw material and freeze on foreign payments, company’s supply chain under such measures has been seriously disrupted.

Big brands like Toyota and Suzuki have already closed their plants
Toyota Motors, Pakistan Suzuki, Indus Motor Company have already closed their plants due to economic crisis in Pakistan, which is affecting their sales. Fahad Rauf, head of research at Ismail Iqbal Securities, a local brokerage firm, said these shutdowns not only impact corporate profits, but also unemployment. Rauf said, ‘The longer these shutdowns continue, the more difficult it will be for companies to maintain employee strength.’

Pakistan is again spreading its hand in front of IMF
Pakistan is currently in talks with the International Monetary Fund (IMF) to unlock the next tranche of $1.1 billion out of the $6.5 billion bailout agreed in 2019.