AT a time when the country is faced with challenges on economic front, the closure of manufacturing units one and after another is really a matter of concern which should raise alarm bells in the quarters concerned who should come forward to undo the same to protect the livelihoods of the people.
After the suspension of operations by a number of automobile companies in recent months , Pakistan’s biggest agricultural machinery manufacturer, Millat Tractors Limited, said on Thursday that it would remain closed from today (Friday) till further notice, citing reduced demand and cash flow problems.
It really goes to the credit of this company of introducing new tractor models in the country as well as new agi implements such as fodder harvesting machines, balers, wheat straw choppers etc.
The shutting down of operations by this company also indicates the financial problems faced by the farmers.
In fact the higher prices of inputs, especially that of fertilizers, have broken their back because of which they are unable to cultivate their land.
Whilst both the federal and provincial governments must address this situation immediately for the sake of food security, it is also for the authorities concerned to sit with the management of Millat tractors as well as other automobile companies and address their genuine problems including that of sales tax refunds.
The closure of operations by the automobile as well as some textile companies would have rendered thousands of people jobless and at a time when the prices of essential commodities are sky rocketing, this situation will only compel the people to commit suicides in desperation.
Before this happens, the government must act for the revival of large scale manufacturing. Not doing so, will also hurt the tax collection.
We understand that because of balance of payments challenge, the authorities have taken a number of measures to slow down the economy.
These included tightening of monetary policy as well as administrative measures to curtail imports.
As the forex reserves situation is likely to improve in the coming days with the inflows expected from some friendly countries, the government must do the needful to address the problems of the industries, otherwise, the consequences would be disastrous for the overall economy.