The textile and auto sectors are grappling with an ongoing crisis, with an auto parts manufacturer announcing a partial shutdown, and a textile mill planning the indefinite closure of two of its units.
Agriauto Industries Limited, a producer of auto parts, along with its wholly-owned subsidiary, Agri Stamping Company Private Limited, is set to undergo a partial shutdown in October due to low production volumes among local vehicle assemblers. This marks the third partial shutdown in a row, with similar interruptions occurring in July and September for the same reason, as disclosed in stock filings.
In another development, Shahzad Textile Mills Limited has communicated in a stock filing that its board of directors has made the decision to close Units No. 1 and 4, effective from September 29, in response to diminished market demand for yarn. However, Units No. 2 and 5 will continue their operations.
Meanwhile, as the Pakistani rupee continues to strengthen against the US dollar in both the interbank and open markets since September 5, Pak Suzuki Motor Company Limited (PSMCL) has announced price hikes of Rs17,000 and Rs18,000 for two of its models, effective from October 1. The new prices for the GD-110S and GS150 models are set at Rs352,000 and Rs382,000, respectively.
During September, the nation’s total oil sales experienced a significant decline of 28% month-on-month (MoM) and 34% year-on-year (YoY), amounting to 1.01 million tonnes. Furthermore, sales for the initial quarter of fiscal year 2024 also dropped by 16% to 3.77 million tonnes.
According to Arif Habib Limited, sales figures for petrol, high-speed diesel (HSD), and furnace oil (FO) in September were 0.52 million tonnes, 0.39 million tonnes, and 0.08 million tonnes, respectively. These numbers reflect a MoM decrease of 23%, 28%, and 28%, as well as a YoY decline of 18%, 24%, and 72%, respectively.
During the first quarter of fiscal year 2024, sales for petrol, HSD, and FO reached 1.85 million tonnes, 1.44 million tonnes, and 0.35 million tonnes, showing a decrease of 1%, 2%, and 65%, respectively, compared to the same period in the previous fiscal year.