Millat Tractors Limited announced to suspend operations from January 6 until further notice, citing low demand and cash flow constraints. MTL is Pakistan’s largest agricultural machinery manufacturer.
According to details, the agricultural machinery manufacturing company Millat Tractors Limited announces the development in a letter send to the Pakistan Stock Exchange (PSX).
“Due to continued decline in demand for tractors and cash flow constraints, the company will remain closed from Friday, January 6, 2023 until further notice,” the statement adds.
The development comes as several other companies in recent weeks have announced either closures or curtailment of operations in Pakistan. The reason is lack of demand, inventory shortages or supply chain disruptions.
Earlier on January 3, KSB Pumps Company Limited closes its production plant in Pakistan. Reason behind is import ban by the federal government.
KSBP announces the temporary suspension of operations at its Hasan Abdal plant from 02 January 2023.
Moreover, an automobile company, Pak Suzuki Motor Company Limited also announces to shut down its production plant from January 2 to 6.
Read also: FBR cuts additional customs duty on import of agriculture tractors
Pakistan Suzuki Motors writes a letter to the Pakistan Stock Exchange (PSX) that the production of cars and motorcycles will be completely stopped from January 2 to 6.
According to the automobile company, the management takes the decision to shut down. Due to conditional approval of import of auto parts and completely knockdown (CKD) kits.
The firm says its supply chain was being affected due to the State Bank of Pakistan (SBP) ban.
In December 2022, another automobile firm, Indus Motor Company (IMC), had to shut down its manufacturing plant. For 10 days due to the central bank’s ban on imports of completely knocked-out (CKD) kits.