‘Tractor sales may decline 67pc’

LAHORE: The sale of tractors during the financial year 2022-23 may plummet up to 67 percent on the back of catastrophic floods, inflation, and import restrictions on auto parts, Pakistan Association of Auto Parts and Accessories Manufacturers (PAAPAM) stated on Monday.

According to PAAPAM, 60,000 units of tractors were sold in FY22, but the sale will barely touch 20,000 units in FY23. Recent heavy floods, overall inflation, rupee depreciation against the dollar, import restrictions on auto parts, delays in refunds of sales tax; all would contribute to a massive decline in the tractor sales, PAAPAM chairman Munir Bana said in an emergency meeting of the association.

He further stated the government's latest policy of allowing duty-free imports of second-hand tractors would be the last nail in the tractor industry's coffin. PAAPAM urged the government to take adequate measures such as long-term loans at low markup to farmers for procuring tractors to save around 300 tractor vendors from a complete closure.