Lahore, Pakistan – The tractor parts industry, a vital component of Pakistan’s agricultural sector, is facing a significant downturn due to economic challenges, delayed refunds, and the threat of GST imposition.
Despite a stable year of tractor sales in the previous financial year, the industry is anticipating a decline in sales for the current year. Tractor sales are expected to reach around 40,000 units, primarily driven by the government’s low markup tractor loan scheme. Business Recorder
However, the industry is facing several headwinds, including:
Delayed refunds: The FBR has not disclosed the methodology for refund processing, leading to delays of over Rs 10 billion since April 2020.
GST imposition: Rumors of a potential GST on tractor sales are causing apprehension among farmers and the tractor industry.
Economic challenges: The overall economic situation, including the impact of floods and reduced government subsidies, has also contributed to the industry’s difficulties.
These challenges have significantly impacted the profitability of the tractor parts industry, which is already operating at 50% capacity. Industry leaders have called on the government to address these issues promptly, including providing clarity on refund processes, avoiding GST imposition, and continuing the tractor loan scheme.
The tractor parts industry plays a crucial role in supporting the agricultural sector, which is a vital component of Pakistan’s economy. Addressing these challenges is essential for ensuring the sustainability and growth of this important sector.
