Millat Tractors Limited, Pakistan’s biggest tractor manufacturer, has announced that it will be closing its operations form January 6 due to low demand and cash flow constraints.
In a notification issued to the Pakistan Stock Exchange (PSX), the company said, “Due to continuing reduced demand of tractors and cash flow constraints, the Company will remain closed from Friday, January 6, 2023 till further notice.”
Millat Tractors Limited isn’t the only one to shut down operations in the country as other automotive manufacturers / assemblers have announced Non-Production Days (NPDs) as well due to supply chain issues caused by restrictions on the import of CKD kits.
Earlier, the tractor manufacturer announced that it will observe Fridays as Non-Production Days (NPDs). In a notification, the company stated, “due to reduced demand of tractors, the company will observe Fridays as non-production days from December 16, 2022, till further notice.”
Meanwhile, Pak Suzuki Motor Company (PSMC) had also announced non-production days (NPDs) from 2nd to 6th of January 2023 due to low inventory levels caused by import restrictions on CKD kits by the State Bank of Pakistan (SBP).
Read more: Pak Suzuki Shuts Down Production Plant Temporarily.
Toyota Indus Motor Company (IMC) also observed NPDs for over 10 days last month over the same reasons and the situation is expected to get worse import of CKD kits are getting harder for these company’s due to depleting foreign exchange reserves.
