Forex crisis: Toyota, Suzuki to partially shut Pakistan output

Pakistan's two leading car assemblers, Toyota and Suzuki, plan partial plant shutdowns next month due to unavailability of raw material amid import restrictions and exchange rate volatility, officials at both companies said on Wednesday.

The government in recent weeks has attempted to curb imports in the face of fast depleting foreign reserves, a declining currency and a widening current account deficit, because of which the rupee has lost over 20 per cent of its value this year.

The move has had a cascading effect on industries that rely on imports to complete finished goods as they say the central bank has delayed the clearance of letters of credit with banks facing a shortage of dollars.

"There will be 10 working days next month, only if central bank allows us to open letter of credit based on the quota they promised," said Ali Asghar Jamali, chief executive at Indus Motor which assembles Toyota vehicles in Pakistan.