Pakistan’s biggest agricultural machinery manufacturer, Millat Tractors Limited, said on Thursday that it would remain closed from today (January 6) till further notice, citing reduced demand and cash flow problems.
In a regulatory filing, it stated, “Due to continuing reduced demand for tractors and cash flow constraints, the company will remain closed from Friday, January 6, 2023, till further notice.”
Millat Tractors Limited had earlier announced that it would observe Fridays as non-production days from Dec 16. 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 lifted last week among other issues.
Some textile companies, including Nishat Chunian Limited, Crescent Fibres Ltd and Suraj Textile Mills, have also partially suspended production recently due to demand destruction and market conditions.
Bolan Castings Ltd, the makers of various auto parts of tractors and commercial vehicles, had announced NPDs from Dec 5-23 due to declining sales.
The production activities of Balochistan Wheels Ltd, the makers of steel wheel rims for cars, heavy vehicles and farm tractors, also remained suspended from Dec 12-23 due to thin orders from the assemblers, the company said.