A huge decline noted in output and sale of cars in four months of FY2023
ISLAMABAD: The Ministry of Finance has reported a huge decline in the production of cars and their sales in the first four months of the ongoing fiscal year (FY 2022-23).
From the July-Oct period of this fiscal, the production of cars has declined by 38.5 percent while their sales fell drastically by 47 percent.
Trucks & buses production and sale also fell by 25.1 and 39.9 percent and tractor production and sale decreased by 36.7 and 46.7 percent, respectively.
Finance Ministry has reported this slowdown in the automobile sector in its monthly Economic Update and Outlook for the month of November 2022.
The contraction of automobiles both on the supply and demand front, also suppressed the sale of petroleum products by 22 percent in Jul-Oct FY23 to 6.2 mn tons from 7.9 mn tons in the same period last year. YoY, oil sales decreased by 17% in Oct 2022 to 1.7mn tons (1.9mn tons in Oct 2021).
During Jul-Oct FY2023, total cement sales were 13.4 mn tons, which were 23.1% lower than sales of 18.04 mn tons in the corresponding period of last year.
The targets fixed for current Rabi-2022-23 crops seem to be challenging due to
delayed sowing in the flood-affected areas. However, timely rains may positively impact production in the agriculture sector.
Furthermore, the Kissan Package will reduce burden on farmers and revive the agriculture sector. The Kissan Package-2022 is providing a waiver of mark-up on
outstanding loan as well as provision of free wheat seeds, subsidy for interest
free loans in flood-affected areas, PM’s Youth Business & Agriculture Loan Scheme, mark-up subsidy and risk sharing scheme for farm mechanization reduction in DAP price, the inclusion of agroSMEs in SME modernization scheme, allowed import of second-hand tractors up to 5 years old with duty reduction,