Earlier this month, Pakistan’s biggest tractor manufacturer Millat Tractors announced that they were shutting down operations. The announcement was met with a worrisome response from the consumers as Millat Tractors is Pakistan’s leading tractor manufacturer. Fortunately, the company has announced that it will resume operations on January 16, 2023.
The top tractor manufacturer Millat Tractor Limited specializes in assembling and producing agricultural tractors, tools, and multipurpose items. IFS applications are sold, implemented, and supported by MTL both in Pakistan and internationally.
This comes as a piece of great news for the auto industry, mainly due to the reasons that Millat Tractors had shut down in the first place. The company stated that it was halting operations “due to continuing reduced demand for tractors and cash flow constraints.” The same reason was cited by other auto manufacturers linked with the commercial vehicle industry.
According to Pakistan Automobile Manufacturers Association’s (PAMA) most recent figures, sales of tractors fell by 18.15% MoM to 1,015 units in December. This is the reason due to which Millat Tractors Limited stopped production, and Bolan Casting Limited announced production cuts.
Reduced Tax on Tractors & Other Commercial Vehicles
This development has just occurred in the wake of the federal government’s decision to lower the registration fee for commercial cars in the Excise and Taxation department of the Islamabad Capital Territory (ICT). The federal government reduced the commercial vehicle registration fee from 4% to 1%. The decision was taken to offer citizens the most assistance possible, according to a news release from the Excise and Taxation department of the Islamabad Capital Territory (ICT).
The State Bank of Pakistan (SBP) has loosened import restrictions on Completely Knocked Down (CKD) kits for regional auto assemblers. With this choice, the auto industry’s output and sales can be stabilized.
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