Islamabad, Jan 6: Al-Ghazi Tractors Limited (PSX: AGTL) has announced the temporary closure of its manufacturing plant from January 4, 2025, to January 31, 2025, for annual maintenance.
The company, which is involved in the manufacturing and sale of agricultural tractors, generators, implements, spare parts, and irrigation solutions for agriculture, informed the Pakistan Stock Exchange (PSX) about the closure on January 4, 2025.
Al-Ghazi Tractors is a subsidiary of Al-Futtaim Industries Company LLC, based in the U.A.E..
The Pakistan Automotive Parts and Accessories Manufacturers Association (PAAPAM) has highlighted a severe crisis in the tractor industry, with billions of rupees in refunds being withheld by the Federal Board of Revenue (FBR). This situation has left assemblers in a challenging position, as they struggle to recover funds from SRO 363 and penalties, leading to legal recourse in some cases.
PAAPAM pointed out that the lack of a mechanism to distinguish between farmer and non-farmer buyers has caused widespread delays in refunds, with older refunds still pending. As a result, tractor assemblers are incurring losses on each tractor sold and have resorted to relying on bank borrowings, which are now maxed out.
The cash crunch has led to delays in payments to suppliers, creating a difficult situation for the SME sector, which is struggling to sustain itself. Due to this, assemblers are no longer accepting fresh bookings or invoicing tractors, except those financed through banks.
