Karachi: The Tractor industry of the country has been severely knocked due to the imposition of sales tax which has jacked up tractor prices and has led the farmers to cut demand.
According to Alfalah Securities, the imposition of sales tax has caused Al-Ghazi Tractors to shutdown since July 2011 while other tractor units are also on the verge of closure. The tractor industry had contributed significantly in the farm mechanization and agricultural growth of the country by supplying around 70,000 tractors over the last three years on account of supportive policies of the government towards agricultural growth. The tractor industry of Pakistan consisting of over 300 units with an employment of 100,000 workers has faced a huge slump of 80% in sales over three months and would collapse if the government failed to take appropriate actions to revive the industry.
Buy on dips.