The cash starved government plans to import 20,000 tractors for the Benazir Tractor Scheme expected to be launched by President Asif Ali Zardari next month, reliable sources told Business Recorder. Federal Minister for Food, Agriculture and Livestock Nazar Muhammad Gondal held a meeting with tractor importers and local tractor manufacturers in Islamabad on Monday, which was also attended by representatives of Millat Tractors and Al-Ghazi Tractors.
Well informed sources told Business Recorder that Gondal asked the local manufacturers to reduce price of their tractors which ranges from Rs 465,000 to 650,000 per tractor, according to make and horse power of the tractor. The local manufacturers of tractors pointed out that despite energy crisis, load-shedding and high cost of production, prices of their products were lowest in the region, therefore they were unable to reduce them further.
Sources said the minister insisted that if the local manufacturers did not cut down their prices, the government would import 20,000 tractors for distribution amongst the farmers under the Benazir Tractor Scheme. Earlier, the government had indicated to distribute the tractors evenly amongst local manufacturers and importers.
It may be added that Zarai Taraqiati Bank has allocated Rs 72 billion under head 'Benazir Zarai Credit Card' and 'Benazir Tractor Scheme' to provide easy credit facility to farmers. Through these schemes, farmers would be able to have easy access to credit through ATM cards to cater their immediate financial needs.
The Pakistan Association of Automative Parts & Accessories Manufacturers (Paapam) has strongly condemned the government's move to import the tractors and described it against the national interest. Talking to this scribe, senior members of Paapam said that the local manufacturers and vendors were manufacturing more than 50,000 tractors at the minimum price to meet yearly needs of the nation.
They said that the local automobile and vending industry was in crisis because of low demand and lack of equity. "If the government decides to import tractors at double price of the locally manufactured tractors, then it would be a grievous blow to the local engineering sector," they opined.
They argued that the PPP leaders had been facing a reference of corruption over import of tractors during their earlier stint in power, therefore they should avoid taking controversial decisions. They said that the imported tractors would cost around 9,500 dollars per piece in foreign exchange while the nation is facing an acute financial crunch.