Imposition of ST: tractor industry now virtually collapsing

The tractor industry has been hard hit by the imposition of Sales Tax in March 2011, and is now virtually collapsed. Fiat Tractors plant is closed since July while Millat Tractors has drastically cut down their production. Many thousand unsold tractors are parked in both the factories and their dealerships.
Suspension of production of tractors has not only adversely effected hundreds of vendors, but also expected to have negative impact on farm mechanisation and agricultural growth. The farmers are already suffering because of floods, scarcity of water, high prices of fuel and shortage of electricity. Escalating input prices will seriously damage pursuit of Agri Sector growth. The horse power to acre ratio in Pakistan is already very low in comparison to developed countries and even India, which demands induction of new tractors to the farming sector at a higher pace so as to improve farm mechanisation and productivity.-PR