Bannu Woollen too suspends production, Pak Suzuki extends shutdown
Business
Raw material shortage continues haunting industries in Pakistan
KARACHI (Web Desk) – Bannu Woollen Mills Limited became the latest causality of raw material shortage and joined the list of those industrial units which are temporarily shutting down production in Pakistan, as Pak Suzuki Motor Company too extended the closure of its plants.
According to a notice shared with the Pakistan Stock Exchange, Bannu Woollen said the shutdown would remain in effect for two weeks from July 2 to July 15. “The production activities of the company would resume from 16 July 2023,” it added.
The decision is a repeat of what we had witnessed in March when Bannu Woollen – one of the country’s top textile mills – opted for closing production for six weeks from March 25 to May 5 for the same reasons.
“Due to current economic situation and its effect on the ability of the banks to open Letters of Credit (LCs) for the import of raw materials, and as a result, it is unable to continue with the production activities,” it had stated.
Bannu Woollen, established by PIDC (Pakistan Industrial Development Corporation) in 1953, is the oldest industrial unit of its kind in Pakistan. Later in 1964, it was purchased by Bibojee Group of Companies after the PIDC decided to go for disinvestment.
On the other hand, Pak Suzuki extended the shutdown of its bike and car plants till July 15 as it continues to face acute shortage of parts and accessories.
Earlier, the company had decided to suspend operations of the motorcycle and four-wheeler plants from June 22 to July 8.
Previously, the PSMC had extended the shutdown of its motorcycle plant till June 16 after closing the factory on May 22 untilJune 10.
Like its competitors, the record-high inflation and the resultant reduced purchasing power means that the sale of Pak Suzuki products witnessed a 54 percent fall to 62,354 units during the first 11 months of the current fiscal year against 134,270 units in the same period in 2021-22.
