Honda closes Pakistan plant over financial crunch

Honda blamed the current economic situation for its decision. Pic/AP

Amid the ongoing financial crunch in Pakistan, another car maker company Honda on Thursday announced to close its plant citing severe disruption in supply chain as a major reason, reported Geo News. Honda Atlas Cars - the assembler of Honda automobiles in the country blamed the current economic situation for its decision and said that the plant will remain closed from March 9 to 31.

The car maker company said that it would not be able to continue with its production and will be shutting down its plant for the remainder of the month. The automaker, in a notice sent to the Pakistan Stock Exchange, said that the decision has been taken as the company's supply chain has been "severely disrupted," reported Geo News.

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"Considering the current economic situation of Pakistan whereby the government resorted to stringent measures including restricting the opening of letters of credit for import of CKD (completely knocked-down) kits, raw materials and halting foreign payments, the company's supply chain has also been severely disrupted," the company said highlighting all the reasons for the plant shutdown.

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