20000203

Govt may import tractors from China

ANWAR RAJANI

KARACHI: The federal government is likely to import tractors from China and waive duty and sales tax on them to enable the growers to have tractors at cheaper rates.

The ministry of commerce is collecting views from the different ministries about the import of Chinese tractors. The price of the imported tractors will be highly competitive, as it will be available at about Rs 150,000 per unit. The prices of local tractors range from Rs 450,000 to 500,000 per unit.

Some Chinese tractors were imported by the Benazir government and were sold at low prices to the growers but the availability of spare parts and the performance of the tractors were reportedly not satisfactory. These tractors are still lying idle with the growers.

According to informed sources, the import of Chinese tractors will adversely affect the operation of the local industry. The local industry is already facing a financial crunch due to stockpiling of their tractors.

It is reported that the Ministry of Commerce has received a request from China Gold Ox to be allowed to export tractors to Pakistan. The tractors may be available at a cheaper price like those imported from Poland and Belarus under the Awami Tractor Scheme of Benazir Bhutto.

Local industry witnessed a boom last year, but at present it's heading towards trouble. As per the reports released by manufacturers association, only 3,830 tractors have been booked during the six months from July to December 1999. In the months of October, November and December there was very low booking of 518, 68, and 367 tractors, respectively.

Local tractor manufacturers are concerned that while they had prepared themselves to deliver 40,000 tractors this year, low bookings have damaged their business, which in turn supports almost 500 parts manufacturers who had geared themselves to meet the increased demand of 40,000 tractors this year.

The tractor industry has been further hit by the hold put on the Green Tractor scheme. The Punjab government, having made provision in the budget, was prepared to launch the Green Tractor scheme for 5,000 tractors on October 18 last when the computer draws were to take place. As directed by the previous government of Punjab, local tractors manufacturers had prepared themselves to supply of 5,000 tractors within two to three months.

Components, special paints and shipment of parts had all been arranged. Suddenly the scheme was put off when the new government took over, leaving the framers in the Punjab as well as the tractor manufacturers helpless.

A source of PTMA expressed deep concern over the low lending by ADBP to finance the 40,000 tractors. The tractor makers have called upon the government to revitalise the tractor industry which is the only automobile sector with 85 percent local contents.

The local tractor industry is also planning to approach the Tariff Commission to see if the import of Chinese tractors will be violative of protection to the indigenous industry.