Millat Tractors shut down operations in Pakistan

ISLAMABAD: Pakistan’s biggest agricultural machinery manufacturer, Millat Tractors Limited, has announced to shut down its operations from January 6 till further notice, citing low demand and cash flow constraints, ARY News reported on Thursday.

According to details, the agricultural machinery manufacturer – Millat Tractors –announced the development in a letter sent to Pakistan Stock Exchange (PSX).

“Due to continuing reduced demand for tractors and cash flow constraints, the company will remain closed from Friday January 6, 2023 till further notice,” the statement added.

The development came as several other companies in recent weeks have announced either a shutdown or reduction in operations in Pakistan owing to reduced demand, inventory shortage, or supply chain disruptions.

Earlier on January 3, KSB Pumps Company Limited (KSBP) shut down its production plant in Pakistan due to the import ban imposed by the federal government.

KSB Pumps Company Limited (KSBP) announced to temporarily suspend its Hasanabdal plant operations from January 02, 2023, due to the import ban. The firm also apprised its decision to the Pakistan Stock Exchange (PSX).

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Moreover, an automobile company Pak Suzuki Motor Company Limited has announced to shut down its production plant from January 2 to 6.

Pakistan Suzuki Motors wrote a letter to the Pakistan Stock Exchange (PSX) that the production process of cars and motorcycles will be completely shut down from January 2 to 6.

According to the automobile company, the management decided the shut down due to conditional permission for the imports of the auto parts and completely knocked down (CKD) kits. The firm stated that its supply chain is affecting due to restriction of the State Bank of Pakistan (SBP).

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In December 2022, another automobile firm, Indus Motor Company (IMC), had announced to shut down its manufacturing plant for 10 days due to the imposition of a ban on the imports of completely knocked down (CKD) kits by the central bank.