Amraiz Khan
The tractor industry has urged the prime minister of Pakistan to take notice of tractor industry since its 350 vendors have been currently closed down.
The symbolic permission given to tractor industry allowing them to commence production cannot function in isolation unless and until a proper notification allowing its allied vendors and traders to produce and transport components is not given in parallel. This is urgent and the need of the time if we have to save the harvesting and the upcoming sowing season from a total collapse.
In a statement, Alghazi Tractors Ltd CEO Mohammad Shahid Hussain said the tractor assemblers were already fighting for survival even before the coronavirus episode occurred, which has multiplied their problems.
“Tractor manufacturers are only asking for expeditious and urgent payout of their genuine Sales Tax refunds that have been in pending to them for long. Immediate refunds would improve the cash flow of the industry and its value chain,” he said. In addition, this is the time where a subsidy on Tractors for farmers would come handy as the affordability of framers at this junction is highly compromised. This is needed if we wish the mechanization process not to come to a halt.
Tractor production is stalled ever since the lockdown so it’s zero since that time while YTD the industry is down at least around 23-24%. As for refunds, Alghazi Tractors alone have around Rs 700-800m under claim.
Moreover, he added, under the current scenario, it would be a necessary step to withdraw additional sales tax that was imposed lately. “In case refunds are not made; the tractor assemblers would need additional financing to fund their vendors during the financial crunch which certainly would add to the misery and cost of operation”
