Pak Suzuki Motor Co. Ltd announced the closure of its plant due to the government’s refusal to release Completely Knocked Down (CKD) kits from the port. This has led to significant detention and demurrage charges, amounting to billions of rupees. Shafiq Ahmed Shaikh, the Head of Corporate Affairs at Pak Suzuki, emphasized that the CKD kits have been stranded at the port for 45 days, causing a disruption in production.
Shaikh further highlighted the adverse impact on tax revenues due to the halt in production and sales, as the government is unable to collect taxes and duties. Notably, Pak Suzuki has increased the price of the Swift GLX CVT in Pakistan by Rs304,000, which includes a 25% sales tax.
Shaikh also voiced his concerns about the government’s adherence to the auto policy 2021-26. He pointed out that failure to comply with this policy could not only discourage new investors from entering the market but also put existing ones in a precarious situation, potentially leading to long-term repercussions for the automotive industry.
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In response to Pak Suzuki’s assertions, an official at the Engineering Development Board (EDB) informed Business Recorder that the issue stemmed from Pak Suzuki’s alleged non-compliance with established safety regulations.
The situation at Pak Suzuki underscores the need for constructive dialogue and collaborative efforts. It also raises questions about the implications for the automotive industry as a whole. It’s crucial that the company and the government work together to address the underlying issues and prevent further disruptions in the industry.
