Major Pakistani Auto Parts Maker Extends Partial Shutdown to April

Agriauto Industries Limited (PSX: AGIL) will continue to observe partial shutdown during the month of April. In a stock filing to the Pakistan Stock Exchange (PSX), the auto components manufacturer said it will be observing a partial shutdown during April owing to the reduction in production volumes of its major customers. The development is a continuation of last month’s moratorium when Agriauto first announced that it would partially close its plant during the month of March. AGIL is engaged in the manufacture and sale of components for automotive vehicles, motorcycles, and agricultural tractors. Its clients include Suzuki, Toyota, and Atlas Honda, all of which are suffering and have shuttered plant operations on repeated occasions as the auto industry reels with inventory shortages caused by import bans. Pakistan’s auto industry is still besieged by various crises. Listed companies such as Pak Suzuki Motor Company (PSMC), Indus Motor Company Limited, and Honda Atlas Cars have also been ordered to cease production in recent months due to economic hardships. The country continues to require dollars in order to meet its import and other external payment obligations. This problem will persist and put a strain on the auto industry unless policies are put in place to help alleviate the situation.