ISLAMABAD: The Indus Motor Company (IMC), which manufactures Toyota vehicles in Pakistan, has “completely” shut down its plant for two weeks, amid supply chain disruptions due to a ban on the import of raw materials. 

The Pakistani government has banned the import of goods, including industrial raw materials, to stop dollar outflows as the South Asian country’s foreign exchange reserves have depleted to $3.6 billion. 

Commercial banks in Pakistan have been advised to facilitate imports of specified sectors, mainly energy and food. Consequently, they have stopped issuing letters of credit (LCs), leaving importers struggling to arrange the greenback for already placed orders. 

“The company and its vendors continue to face major hurdles in import of raw materials and receiving clearance of their consignments from commercial banks. This has disrupted the entire supply chain and the vendors are unable to supply raw materials and components to the company,” the IMC said in a disclosure to the Pakistan Stock Exchange Limited on Tuesday. 

“In view of the above, the company has decided to completely shut down its plant from 1st February, 2023 to 14th February, 2023. Moreover, the company has also decided to start its production on single shift basis from 15th February, 2023 until further notice.” 

Cash-strapped Pakistan has been desperately looking to secure external financing, amid a severe foreign liquidity crunch, currency devaluation and more than 24 percent inflation. 

The South Asian country is currently holding talks with the International Monetary Fund (IMF) for the resumption of its $7 billion loan program, which has been stalled since September last year. 

A successful review of the program will result in the release of a much-needed $1.2 billion to Islamabad to meet its international financing obligations.