Millat Tractors shut down

The financial crunch is taking a heavy toll on Pakistan’s economy as is evident by the closure of Pakistan’s biggest agricultural machinery manufacturer. The company announced that owing to continuing reduced demand for tractors and cash flow constraints, the company is closing down indefinitely. Millat Tractors shut down had earlier announced that it would observe Fridays as non-production days (NPDs) from 16 December but now have ceased operations altogether. Millat Tractors shut down woes began much earlier as in March last year it suspended production citing severe liquidity crunch. It had said at the time that the entire tractor manufacturing industry was facing tough cash problems as over Rs.8 billion sales tax refunds of the industry were stuck with the FBR. Millat Tractors is not alone in closing the shop as a number of auto part vendors have suspended operations in recent months, citing reduced demand and import curbs imposed by the State Bank of Pakistan that were though lifted last week. Bolan Castings, makers of various auto parts of tractors and commercial vehicles, had announced NPDs from 5-23 December due to declining sales. The production activities of Baluchistan Wheels, makers of steel wheel rims for cars, heavy vehicles and farm tractors, also remained suspended from 12-23 December due to thin orders from the assemblers. TW