Floods, derealization
\n Islamabad
\nPakistan Association of Auto Parts & Accessories Manufacturers (PAAPAM) Munir Bana has said that the recent heavy floods, hyperinflation, dollar\u2019s 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,
\nIn a hurriedly called meeting of the association held here today, 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.
\nThis foggy scenario was considered most precarious by the 300 part-makers, who are dependent on sales turnover of Millat Tractors and Al-Ghazi Tractors.
\nDelays in payments and sharp decline in orders have left the parts industry in a bankruptcy situation, with no improvement in sight.
\nThe 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.
\nTherefore, sales of tractors during this financial year will barely touch 20,000 units as compared to 60,000 units sold last year.
\nPAAPAM\u2019s key office bearers, the Chairman, Munir Bana & Senior Vice Chairman, Usman Malik, presided over the meeting, which was also attended by former chairmen, Mumshad All and Razzaq Gauhar, as well as former SVC Irfan Qureshi, EC member Omer Abdullah, and members of Tractor Committee, Javaid Hafeez, Shahid Dad and Moin Bajwa.
\nPAAPAM was of the view that several steps would have to be taken by the assemblers and government to jump-start tractor sales, mainly long-term loans at low markup to farmers for procuring tractors, release of old sales tax refunds to assemblers to improve their liquidity and focus on export of tractors to Africa. If these actions are not taken, the 300 engineering SMEs involved in tractor parts production will close down in a matter of months.<\/p>\n","protected":false},"excerpt":{"rendered":"
Floods, derealization Islamabad Pakistan Association of Auto Parts & Accessories Manufacturers (PAAPAM) Munir Bana has said that the recent heavy floods, hyperinflation, dollar\u2019s 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, In […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-299320","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n