Millat Tractors Limited — Pakistan’s biggest tractor manufacturer — has shut down operations in the country till further notice. The company has cited, “continuing reduced demand of tractors and cash flow constraints,” as the reason for the indefinite shutdown.
Millat Tractors is among the most prolific automakers in Pakistan that boast the highest localization rate besides Atlas Honda (the bike company). The company’s last announcement of non-production days (NPDs) came last month due to the same reasons.
At the time of filing, the company’s scrip at the bourse stood at Rs. 553.01, down Rs. 17.63 or 3.09 percent. Due to the ongoing economic meltdown, Kohinoor Spinning Mills Limited, last month, decided to halt production activities, while Attock Refinery Limited temporarily closed its main distillation unit.
Likewise, several other car companies are observing NPDs due to the shortage of inventory and a critical demand slump. The government promised a better year for Pakistanis in terms of economic development but the latest developments in the industrial sector suggest otherwise.