Pakistan Rupee Exchange Rate
The Pak Suzuki Motor Company (PSMC) has announced another round of non-production days (NPDs) in May 2023 due to operational issues resulting in inventory shortages.
The car and bike assembly plant will be shut down from May 2 to May 9, 2023. The company has officially notified the Pakistan Stock Exchange (PSX) about this decision.
Moreover, PSMC reported its highest-ever loss after tax (LAT) of Rs. 12.91 billion in Q1 2023, compared to a loss of Rs. 460 million in the same period last year. The finance cost, which includes exchange loss, markup on late delivery,
and demurrage and detention charges, rose to Rs. 12.8 billion, up 12 times year-on-year and three times quarter-on-quarter. The net sales of the company decreased by 54 percent year-on-year to Rs. 21.8 billion due to subsequent price hikes and production slowdowns in recent months.
The main reasons for PSMC’s heavy losses in Q1 were intermittent production shutdowns since last year and the unavailability of completely knocked down (CKD) kits. Automakers have blamed the State Bank of Pakistan’s reluctance to approve letters of credit (LCs) for the clearance of imported goods, forcing plants to close production.
