Millat Tractors to Restart Production Tomorrow

Millat Tractor Limited (MTL) has announced to resume its production operations from Tuesday, March 22, 2022.

In a notification to the PSX, the company stated that it is resuming its production operations from tomorrow as the company had previously announced to cease operations due to a serious liquidity shortage on 4 March 2022.

Millat had informed the Pakistan Stock Exchange (PSX) and all the concerned Federal Ministries that due to the drastic liquidity crunch being experienced in the industry, it has shut down operations.

The company had also complained that the industry’s sales tax refunds of over Rs. 8 billion had not been released by the Federal Board of Revenue (FBR) for the last two years.

The industry was suffering huge losses for each unit sold. According to an industry leader, the company was incurring a loss of Rs. 150,000 for each unit sold.

The company had also pointed out that if it went out of business, the production of the industry would drop by 3,000 units per month, resulting in an increase in the prices of tractors in the market.

MTL has reportedly sold 35,000 units in the previous year and plans to sell 44,000 in 2022.