Local industry concerned at likely import of tractors from Belarus

The local tractor industry has expressed grave concerns over the likely import of tractors from Belarus, saying it would hit the ongoing expansion plan indigenously. The industry sources told Business Recorder that the government was set to sign a free trade agreement for import of tractors from Belarus. Furthermore, they added, the federal Commerce Ministry was also negotiating a free trade agreement with Turkey for the same purpose.
These developments have disturbed the industry sentiment by and large and everyone is confused on the future of their expansion plans. It may be noted that the Sindh government has also shown a similar desire during its meeting with Chief Minister Syed Murad Ali Shah.
It may be noted the local industry had registered a highest production of tractors, falling around 72,000 back in 2009-10 and 2010-11, which shows the level of demand for local manufacturing mainly on account of different subsidies given by the government to agriculture sector.
The industry has potential to meet the domestic demand for tractors; therefore, the question doesn't arise to go for its import. "The import-indeed an imprudent decision, would not only result in widening the gap of trade deficit that has already reached to $20.20 billion but would also cause unemployment in the country which in turn could foil the government efforts to purge terrorism," the sources added.
The local industry has just come out of a five-year long recession as tractors sale was almost declined by 50 percent. The tractors sale that was recorded 70,000 per annum about five year ago was slide down to 35,000. The tractor industry has now started recovery and improving gradually to regain its lost position.
Apart from three big players-Millat Tractors, Ghazi Tractors and Orient Automotive, about 300 vendors who provide spare-parts to the industry are providing jobs to thousands of people. Millat Tractor signed an agreement with the Messy Ferguson that has hundreds of outlets world-wide, particularly in African countries. By virtue of the agreement, the Millat Tractors has started exporting tractors to a number of countries in the African region including Tunisia, Zambia, and Nigeria etc.
The tractors export is not only strengthening the financial health of the company but also fetching substantial amount of foreign exchange to the national exchequer. To keep its share in the international market, the local industry has started producing tractors with tier two and three engines to meet the environmental compliance set by the importing countries.
As a result, the local tractor manufacturers are making huge investment for this purpose which could be abandoned if government serious thinks over the import of tractors; the sources said and urged the government to review its policies in the larger interest of local industry.
The sources were of the view that the government should take the necessary stakeholders including tractor manufacturers, vendors and service dealers on board before signing any free trade agreement with any country that could hit the local industry. "Our industry has a capacity to produce tractors to meet the total demand of the local farmers," the sources said, adding that a delegation of tractor manufactures was also going to meet with the Federal Minister of Commerce and other government high-ups in a week or so to express their concern on the issue, sources maintained.