Toyota, Suzuki to partially shut Pakistan output over forex, shortage issues

A man walks past a Suzuki outlet, displaying cars in Karachi, Pakistan, July 27, 2022. (REUTERS)
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Updated 27 July 2022
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Toyota, Suzuki to partially shut Pakistan output over forex, shortage issues

  • Government in recent weeks has attempted to curb imports in the face of depleting foreign reserves
  • Due to widening current account deficit, the Pakistani rupee has lost over 20% of its value this year

KARACHI: 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 percent 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, affecting their ability to import materials.

“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,” Ali Asghar Jamali, chief executive at Indus Motor Company Ltd. which assembles Toyota vehicles in Pakistan, told Reuters.

He said the company was offering refunds to customers facing delays and markups on their payments, with deliveries likely to be delayed by at least three months and prices to be revised as the country does not have dollars available.

Reserves with the central bank have fallen to as low as $9.3 billion, enough to cover less than two months of imports. The current account deficit for the last financial year touched 5 percent of GDP with imports hitting record highs.

Pak Suzuki, which assembles Suzuki vehicles locally, echoed the sentiment, citing the central bank’s new mechanism for prior approval for imports.

“Restrictions had adversely impacted clearance of import consignments from ports,” the head of public relations for Pak Suzuki Motors, Shafiq A. Shaikh, said.

He said the unavailability of materials may result in a plant shutdown in August.

“If the same situation continues, then from August 2022 we have big problems,” Shaikh said.

State Bank of Pakistan did not respond to requests for comment.

The sale of locally assembled cars in Pakistan surged by around 50 percent from July 2021 to May 2022 compared with the same period of the previous year, according to the data of Pakistan Automotive Manufactures Association.


Pakistan’s JF-17 fighter jet draws ‘strong interest’ at Riyadh defense exhibition

Updated 29 min 30 sec ago
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Pakistan’s JF-17 fighter jet draws ‘strong interest’ at Riyadh defense exhibition

  • Jets showcased as Pakistan seeks to expand defense exports
  • Interest in JF-17 has heightened after May 2025 conflict with India 

ISLAMABAD: Pakistan’s JF-17 Thunder fighter jet has drawn “strong interest” at the World Defense Exhibition in Riyadh, Pakistan’s state broadcaster said on Sunday, as Islamabad promotes the aircraft to international buyers at one of the region’s largest defense industry events.

The exhibition brings together defense officials, manufacturers and military delegations from dozens of countries, offering a platform for arms exporters to showcase equipment and pursue new contracts amid heightened global and regional security concerns.

Saudi Arabia has sought to position Riyadh as a regional hub for defense and aerospace exhibitions, using such events to foster partnerships and attract international manufacturers as part of broader diversification efforts. 

Last year Islamabad signed a mutual defense pact with Riyadh and is reportedly discussing another defense agreement involving Saudi Arabia and Turkiye, although details have not been made public.

“At the World Defense Exhibition in Riyadh, the Pakistan Air Force’s JF-17 Thunder has attracted strong interest from visitors and defense experts, standing out among fighter jets displayed by the US, Saudi Arabia and other countries,” state broadcaster Pakistan Television reported.

Islamabad is attending the exhibition in the backdrop of talks with at least 13 countries, six to eight of which are in an advanced stage, for deals involving JF-17 jets made jointly with China as well as training aircraft, drones, and weapons systems, according to recent media reports. 

Interest in the JF-17 jets has been bolstered by its operational visibility following the Pakistan-India military confrontation in May 2025, which Pakistani officials and defense analysts have cited as reinforcing the aircraft’s combat credibility.

Islamabad has increasingly positioned the JF-17 as a cost-effective multirole combat aircraft for countries seeking alternatives to high-end Western fighter jets. The aircraft is already in service with several foreign air forces and remains central to Islamabad’s defense export strategy.

Countries engaged in talks include Sudan, Saudi Arabia, Indonesia, Morocco, Ethiopia, and Nigeria as well as the government in eastern Libya led by Khalifa Haftar. Discussions on JF-17s and other weapons with Bangladesh and Iraq have been publicly acknowledged by Pakistan’s military, although more details have not been made public.

Almost all the potential buyers are Muslim-majority nations, like Pakistan. Many are from the predominantly Muslim Middle East, where Pakistan has historically been a security provider.

Separately, Pakistan’s Defense Minister Khawaja Asif met his Saudi counterpart, Khalid bin Salman bin Abdulaziz Al Saud, at the sidelines of the event. 

Asif congratulated the Saudi leadership and the defense minister on the “successful and splendid” organization of the World Defense Show, state broadcaster Radio Pakistan reported. 

“He described this global defense event as an important milestone in promoting defense cooperation in the region,” Radio Pakistan said.