Islamabad, 6 January 2023 (GNP): Millat Tractors, the biggest tractor producer in Pakistan has decided to cease its operations in the country from 6th January onwards, due to a cash flow crisis and low demand.
The news comes after major manufacturing and textile companies such as Nishat Chunian, Indus Motors, Suzuki Motors, Kia Motors, Airlift, and SWVL, either permanently suspended their activities or reduced their production in Pakistan citing falling demand, a stock shortage, financial constraints, and supply chain disruptions.
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The company issued a notice to the Pakistan Stock Exchange (PSX):
“Due to continuing reduced demand of tractors and cash flow constraints, the Company will remain closed from Friday, January 06, 2023 till further notice.”
Millat Tractors reported a decrease in sales by 1,103 units in November 2022. Al-Ghazi Tractors which is another tractor-producing firm revealed a monthly 65% fall in sales.
According to stats, sales of the entire tractor industry reached 10,498 units in the first five months (July-November) of the current financial year due to the flood crisis, lower consumer buying power and higher prices. This is the third time the agriculture sector has suffered. First the Covid-19 pandemic, then the flash floods and recently after the increase in the cost of production. The cost of production has more than doubled in the agricultural sector.