300 tractor parts-manufacturing SMEs face severe liquidity crunch as FBR suspends refunds

LAHORE (Web Desk) - The Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) has said at least 300 tractor parts manufacturing SMEs have been forced to shut their units amid dwindling tractors’ demand along with a severe liquidity crunch.

The association said the suspension of refunds by the Federal Board of Revenue (FBR) to tractor assemblers, which was due for a long time.

The association s ofifce-bearers held an emergency meeting on Thursday and discussed the gravity of the situation being faced by the auto parts industry of the country.

The meeting participants submitted an alarming report that the closed industrial units had laid off around 100,000 workers in and around Lahore during this unprecedented ongoing crunch, which was very unfortunate.

The house was of the opinion that the present crunch, followed by the floods, would cause acute food shortages if the government did not take stock of the situation immediately.

A large number of jobless people were rendered homeless in tractor and ancillary industries which were closed down in recent days, the meeting participants, said and added that closer of AGTL, followed by Millat Tractor, has aggravated the situation.