Chairman Pakistan Association of Auto Parts & Accessories Manufacturers (PAAPAM), Munir Bana has said that the recent heavy floods, hyperinflation, dollar’s unprecedented appreciation, import restrictions on auto parts, and political uncertainty have severely affected the local tractor parts industry, which is facing a massive drop in production during the current financial year.
Speaking during an emergency meeting held here on Sunday, the tractor parts manufacturers expressed deep concern at the major dip in tractor sales, as both tractor assemblers were struggling with the drop in their orders, FBR investigations, and delay in refunds of sales tax refunds running into billions of rupees. This foggy scenario was considered most precarious by the 300 part-makers, who are dependent on sales turnover of Millat Tractors and Al-Ghazi Tractors. Delays in payments and sharp decline in orders have left the parts industry in a bankruptcy situation, with no improvement in sight. The sales of tractors for the rice and cotton season have also not taken place in Southern Punjab and Sindh, which faced the brunt of massive floods in the country. INP