Pak Suzuki halts production, faces massive losses due to govt restrictions

ISLAMABAD: Pak Suzuki Motor Co. Ltd announced on Thursday that it has ceased operations at its plant. The shutdown is attributed to the government’s refusal to release the company’s Completely Knocked Down (CKD) kits from the port, leading to billions of rupees in detention and demurrage fees.

Shafiq Ahmed Shaikh, Head of Corporate Affairs at Pak Suzuki, revealed that the CKD kits have been stranded at the port for 45 days, severely impacting production.

“The government is also losing out on taxes and duties due to the halt in production and sales,” Shaikh noted.

He emphasized that the industry has urged the government to adhere to the auto policy 2021-26, warning that failure to do so could deter new investors and create critical challenges for existing ones.

Conversely, an official from the Engineering Development Board (EDB) informed Business Recorder that the issue stems from Pak Suzuki’s current non-compliance with established safety regulations.