Islamabad: Mr. Aziz Ahmad Bilour, Federal Secretary of Ministry of Industries has said that the Government is well aware of the problems that the tractor industry is confronted with nowadays but with the persistent support and facilitation of the Government this Industry will very soon be back on track and will achieve a production target of 100,000 units a year. He commented this while holding a meeting with the representatives of the tractor industry and PAAPAM.
The series of meeting that the Ministry of Industries ( MoI) has conducted during this week with the Associations of auto manufacturers, its vendor industry and other stake holders of auto industry aimed at obtaining a factual picture of the issues and problems faced by this industry.
The MoI sought alternate proposals and plans from the participants of these meetings which could served the purpose of all the stake holders i.e the industry, the customer and the Government. This will also help MoI to present a true picture of the status of industry in the country and their rightful demands to the higher fora of the Government.
Mr. Laeeq Ansari CEO Millat Tractors and Mr. Syed Nabeel Hashmi Chairman Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) apprised the Secretary Industries about the plight of the tractor industry after the imposition of GST. They said that Pakistan’s tractor is one of the cheapest in the world and the industry will stay competitive and in no way feels threatened despite zero import duty on the import of tractor.
They were of the view that the purchasing power of the farmers in Pakistan has drastically gone down because of several factors like successive floods, withdrawal of bank leasing for tractors and the rising inflation. Therefore the imposition of GST and the subsequent rise in the prices of tractors has resulted in the sudden decline in sales. They suggested that if the imposition of GST is inevitable then it should be a staggered imposition starting from as low a rate as 4% and gradually moving to a high of 16% over 4-5 years.
Talking to the representatives of the tractor industry and PAPAAM Mr. Bilour said that the MoI is concerned over the drop in the sales of tractors since last few months and will take every possible step to bring the tractor industry on flourishing path again. He said that the revival of our economy hinges on the mechanization of the agriculture and the MoI will take lead in this important cause.
Sharing a comparison about the level of mechanization in agriculture in the region he said that Pakistani farmer uses 1.7 tractor Horse Power/ hectare, while Indian farmer uses 2.5 HP/hectare, Korean 4.11 and Japanese 7.0 HP/hectare. Therefore the Government will ensure that its policies encourage and facilitate the shift to mechanization of agriculture in Pakistan.
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