Millat Tractors, Pakistan’s largest tractor manufacturer, stated earlier this month that it was ceasing operations.
Consumers were concerned by the announcement, as Millat Tractors is Pakistan’s top tractor manufacturer. The corporation has declared that activities will resume on January 16, 2023.
Why did Millat Tractors Shut Down Production?
Millat Tractors went down in the first place. The firm announced that it was ceasing operations “due to continued low demand for tractors and cash flow limitations.” Other automakers associated with the commercial vehicle market stated the same reason.
Tractor sales in Pakistan declined by 18.15% MoM to 1,015 units in December. According to the most current numbers from the Pakistan Automobile Manufacturers Association (PAMA). This is why Millat Tractors Limited ceased manufacturing and Bolan Casting Limited announced a production reduction.
Federal Governments Reduce Taxes on Tractors and Commercial Vehicles
This results from the federal government’s decision to reduce the registration cost for commercial vehicles in the Excise and Taxation department of the Islamabad Capital Territory (ICT).
The federal government cut the registration price for commercial vehicles from 4% to 1%. According to a news release from the Excise and Taxation department of the Islamabad Capital Territory, the decision made to provide individuals with the maximum support feasible (ICT).
State Bank of Pakistan’s Role
The State Bank of Pakistan (SBP) has relaxed import restrictions for regional car assemblers on Completely Knocked down (CKD) kits. The car industry’s output and sales can be stabilize using this option.
