History Of The Millat Tractors Limited

History Of The Millat Tractors especial(a)This whole report starts with the brief introduction of the Millat Tractors Limited. The introduction consists of political party background, products, objectives, explosive charge and vision statement and dealer compensate the axework. subsequently this the report contain a complete fiscal analysis of the firm and its comparison with its main rivalry i.e. Al-ghazi tractors, these symmetrys c everyplace exclusively the proportions which include the liquidity, leverage, profit world power balance, activity and some other symmetrys. After this in the end the report contain the literature and bind check from different authors and websites.ContentsCompany ReviewIntroductionThe millat tractors limited was naturalized in 1964. At that time the main goal of this community was to barge in and market Massey Ferguson Tractors in Pakistan. In 1967, an assembly plant was set up to assemble tractors in semi-knocked d consume condition. I n 1972 the company was nationalized and started assembling and merc religious serviceing advanceise tractors on the behalf of Pakistan tractor Corpo dimensionn (PTC), formed by the government of Pakistan to import the tractors in semi-knocked down condition. Later in 1980 the government decided to manufacture the tractor in Pakistan, so they put this responsibility on Pakistan Tractor Corpo proportionalityn (PTC). PTC transferred this role to Millat tractors in 1981. It took only one course for millat tractors limited (MTL) to manufacture their own tractors, by setting up the first locomotive assembly plant in Pakistan. In 1984, the MTL set up a manufacturing facilities for the machining of intricate components, which were non for sale in Pakistan. In 1992, MTL was privatized done management buyout (wikipedia).Mission StatementMillat to be market leader in rude tractors and machinery, building Companys image by dint of innovation and competitiveness, grow by expanding mar ket and investing into group companies, ensuring bliss to guests and stakeholders and to fulfil social obligations (Millat Tractors).Vision StatementMillat to be a spherical group of companies, recognized for a setting of quality products with innovative fancy capabilities (Millat Tractors). demarcation Core ValuesOur customers argon our first prioritysuccessfulness of our stakeholdersCorporate social responsibilities to enrich the lives of the community where we operateRecognition and reinforcing stimulus for the talented and advanced performing employeesExcellenceIntegrity in dealing (Millat Tractors).Objectives and Strategic PlanningObjectivesThe main objective of the millat tractors in to be a market leader as removed as market section and technology is concerned, in the atomic number 18as of operations. The objective is the likes ofwise to ceaselessly improve the susceptibility and competitive strength and to stumbleer the customer the quality products and suppor t serve at competitive prices and to their satisfaction. To beget sufficient earnings to ensure a secure hereafter for the company and to protect and make up the make outholders return by means of continuously improving the performance. Moreover the objective is in any character to enhance the creativity and job satisfaction of the employees by providing opportunities for the personal development. To play a vital role for the society and environment (Millat Tractors).Strategic planningTo make optimum use of ancillary industriousness in Pakistan to maximize indigenization of tract part and acquire equipment. To create in-house plant facilities for manufacture of components for tractors and other agricultural machinery which send packing non be fabricated by the ancillary labor, where investments required be heavy or where technology involved is intricate. MTL will maintain a strong RD subdivision to append technical assistance to topical anesthetic manufactures an d for product development. Ensure customer satisfaction by providing quality products at competitive prices with struggleranty reportage and ensuring by and by gross revenue service (Millat Tractors).ProductsMTL has a huge variety of products which includes tractors for the husbandmans that prune from 50 HP to 85 HP, to fulfil the needs of the farmers for factory farm purpose. These tractors merchantman be purchased not only against specie in and similarly by rely funding. Besides Tractors MTL similarly offer industrial products like generators, that range from 15 KVA to 40 KVA, forklift trucks and pristine movers, that range from 50 HP to 85 HP. MTL too deals in range of generating sets from 27 kVA to 2000 KVA (Millat Tractors).Other than above mentioned products MTL overly offers a wide range of agricultural implements like chisel, Disc and take form board plough, tine tillers, offset disc harrow, ridger, front blade, multi-purpose rear blade, agriculture loade r, farm trailer, hydraulic tipping trailer, jib crane, post hole digger, lawn mover, and pneumatic pruning sets. MTL besides abide a wide range of forbear parts end-to-end the country (Millat Tractors).DealersMTL has dealers throughout the country to make sure the availability of the tractors. MTL dissever the whole country into six regions that are KPK, Northern Punjab, South Punjab, focal ratio Punjab, Lower Punjab and Balochistan (Millat Tractors).Competitor AnalysisThe main competitor of Millat Tractor is Al-ghazi tractors, besides Al-ghazi in that respect are few private tractor manufacturers and Chinese tractors that multiply the competition. Be base is the financial analysis of some(prenominal) millat tractors limited and Al-ghazi tractors. On the pedestal of these financial ratios we foundation match the performance of two the firms. For Financial statements see the appendix. As far as the end product and gross gross sales of MTL units are concerned a graphic al record from their websites are given below.http//millat.com.pk/wp-content/uploads/image/chart3.JPGSource http//millat.com.pk/?page_id=408Financial RatiosLiquidity Ratios electric current RatioAlthough the current ratio of both the firms are greater than 1, solely the current ratio of Al-ghazi tractors is last than 3 which evidences that the company is inefficient to utilize its current assets to pay off the current liabilities. On the other occur the current ratio of MTL is greater than 1 plainly less than 3 which shows that company is expeditiously utilizing its current assets to settle the current liabilities. So on the basis of the current ratio we can say that Millat tractor limited is workings to a greater extent efficiently with their assets as oppose to Al-ghazi, which has huge current ratio thats shows the inefficiency in expression of utilizing the assets.Quick RatioQuick Ratio shows the companys ability to use the cash and cash equivalents to settle the current liabilities, this excludes the inventory. The ratio of both the companies shows that millat tractor is to a greater extent(prenominal)(prenominal) efficient as par to Al-ghazi. Moreover the ratio is withal close to the current ratio which shows that inventory is well managed by the millat tractors. Although the ratio of Al-Ghazi is often higher(prenominal) than the millat tractors, only the ratio higher than 3 is not a good cross. This shows that Al-Ghazi tractors are unable to utilize the cash and cash equivalents to settle the current liabilities due which their ratio is higher than that of Millat tractors.Inventory to discharge working not bad(p)This ratio tells us the extent to which the working capital is tied up in the inventory, although it is less than 1 for both the firms. further in graphic symbol of millat tractors it is higher than al-Ghazi which is not a good sign as it shows that lots of working capital is tied up in inventory as oppose to that of Al-Ghazi Tractors. During the last yr however the ratio has cliffd in case of MTL and increased in case of Al-ghazi tractors but Al-Ghazi Ratio is still lower as comparingd to MTL. One of the main tenability is the higher inventory since last three historic period of Millat tractors. One social function to be kept in mind is that these inventories mostly consist of spare parts and agriculture implements.Profitability RatiosGross profit bankAlthough the plebeian profit leeway of millat tractors are lower as equivalence to Al-ghazi tractors even they are earning oftentimes on sale as compare to Al-Ghazi. In the year of 2011 Millat tractors report the sale revenue of 24863264 as compare to 14936034 but the reason is the high cost of goods sold. The main reason for the increase in the COGS is the components consumed, which is continuously change magnitude since last four old age. According the millat tractors dealers and the website information the millat tractors is continuously i ncreasing its production and achieved the target of 40000 tractors in the year of 2011, which obviously resulted in the increase in the components consumed. Besides components repair and maintenances and spare parts consumed besides resulted in the increase of COGS, most of them were covered under the warranty claims. On the other communicate in case of Al-ghazi tractors, Components consumed were highest in the year of 2010 and in 2011 the components consumed has decreased because of decrease in production, which alike resulted in the decrease of other things like salaries, spare parts consumed and supplies. Due to this reason Millat tractors, that commenced 40000 units as compare to Al-ghazi tractors that produces 19936 units in the year 2011, has to face lower gross profit margin as compare to the alghazi tractors. Otherwise as far as sales revenue is concerned, it is much much higher in case of MTL as compare to Al-Ghazi Tractors.Operating Profit MarginFrom the year 2008 till 2010, alghazi tractors has higher operating profit margin because of high sales as compare to COGS and low expenses but in the year 2011 Millat tractors beat the Al-ghazi tractors because of increase in production and sales and lower expenses with respect to the sales. Secondly the revenue from the sales against all the expenses are higher for MTL in the year 2011 as compare to the previous year. In the year 2011, alghazi tractors lower their production due to which their revenues also decreased. So the operating profit margin which indicates firms profitability from the current operations excluding reckontain and task, is higher for MTL as compare to Al-ghazi tractors.Net Profit MarginAlthough the sales revenue of Millat Tractors are much higher than the alghazi tractors but they view as to face high finance cost and taxation. In the year 2011 MTL also has to face a huge deferred taxation from the previous eld a languish with the increase in the finance cost which is the res ult of increase in loans, accumulating compensated absences and trade and other payables. Trade and other payables were highest in the year of 2010 but decrease in 2011 due to which finance cost also showed some change magnitude issue rate. On the other hand Alghazi tractors that produces much slighter number of tractors as compare to the millat tractors has to face low finance cost and taxation due to which the ratio is higher.Return on nub AssetsThis ratio calculates the companys earning or profit against the total electronic nedeucerk assets, the higher the ratio the better it is as it shows that the company is earning much(prenominal) profits as compare to their assets. Initially MTL has to face lower ratio when compare to Al-ghazi because of high exploitation in gelt assets and lower growth of profit but in the 2011, when MTL achieved the record production of more than 40000 tractors the ratio increased much higher than Alghazi, which faced an increase in total assets with the decrease in net profits. In 2011, MTL has to face a decrease in total assets with the increase in net profit, which shows that the company efficiently employ its assets to generate the profits. So it is not molest to say that the MTL is much more profitable as compare to Al-Ghazi.Earnings Per ShareThis ratio shows the earnings in stock(predicate) to the owners of the ordinary stock and if you see the ratios then it is clear that MTL has a high earning per share which shows that the investors of MTL enjoying the higher profit against their investments as compare to that of Al-ghazi Tractors. So this also shows that MTL is exceedingly profitable as compare to Al-ghazi Tractors.Return on Stock Holders impartialityThis shows the rate of return on the stock holders investment. The ratio clearly shows a huge difference between the devil companies. In case of millat tractors, the by and by tax profits are increasing against the decreasing profits of Al-ghazi. This shows that investors are enjoying high profits against their investment in case of MTL as compare to that of Al-ghazi profit, which is facing decreasing after sales profits.Leverage RatiosDebt to Assets Ratio high school Debt to assets ratio shows that the company depends more on the debt financing, which ultimately increase the risk. Millat tractors shows increasing debt ratio until 2010 but it decreases in 2011. This shows that the company is more restricted on the debt financing rather than its own assets which made this company risky. Increasing EPS and stockholders justice also shows this as they are enjoying higher return which is the proof that the company is risky as higher the risk, higher will be the return. On the other hand Al-ghazis debt ratio is lower than the MTL, though they are also taking debt to finance their operation but the ratio against the total assets is low which shows that the company is less risk and depending mostly on its own assets as compare to that of MT L, this also results in the lower return. In the year 2011, MTL has dropped in liabilities significantly from the last 2 year but it also followed by the decrease in the total assets from the last two years. In this case we can say that Al-ghazi is better than the MTL.Debt to Equity RatioJust like the Debt to asset ratio, Debt to equity ratio of MTL is also high which shows that MTL also depending on Debt financing more than the equity. This ratio suggest that MTL is depending more on the debt financing as compare to equity financing, this makes MTL more risky. On the other hand Al-ghazi tractors has the lower debt to equity ratio, which makes this company less riskier as they depend on the equity financing more than their debt financing as compare to the MTL. In 2011, the debt to asset ratio as well as debt to equity ratio both shows downward trend in case of MTL, which is because of the huge decrease in the total debt of the company which is almost equal to more that 40 million r upees, due to this there is the decrease in the ratio in the year 2011.Long-term Debt to Equity RatioThis ratio also show the financing condition of the firm. mellower ratio means that the company is more depending on the long term debt as compare to the equity. High ratio shows the high risk for the firm. In this case Al-ghazi has the higher ratio which shows that Al-ghazi is more certified on the long term debt as compare to the equity. MTL dependent on the short term financing but in case of al-ghazi they are more dependent on the long term financing due to which their ratio is higher than MTL. This shows that as far as long term debt to equity ratio is concerned Al-ghazi is much riskier than the MTL.Time interest EarnedThis ratio is lower for the MTL as compare to al-ghazi. This shows that Al-ghazi is better in this case.Activity RatioInventory TurnoverInventory turnover of MTL is much greater than Al-ghazi Tractors which shows that the company is efficient with the inventory and could be able to commute its inventory into sales. Though in the previous year that is from 2008 to 2010 MTL is behind Al-ghazi but in the year 2011, MTL is able to convert its inventory into sales more efficiently and effectivelyFixed Assets TurnoverFixed assets turnover of Al-ghazi is decreasing since the last two year but on the other hand it is continuously increasing in case of MTL which shows that the company is more efficiently utilizes its fixed assets to make the sales. Other reason is that MTL non-current assets shows little or electronegative growth rate with the increasing sales but in case of Al-ghazi sales revenues are decreasing with the increasing fixed or non-current assets. get Asset turnoverJust like the fixed assets turnover ratio, total assets turnover ratio of MTL is also increasing which shows that the company is efficiently utilizing its assets to generate the sales as compare to that of Al-ghazi Tractors.Other RatiosDividend YieldExcept the year 2011, i n which MTL retained most of the earnings, in all the previous years MTL pays higher dividends as compare to the al-ghazi tractors whose dividend fluctuate through out the year. This shows that the investors of MTL acquire higher dividend as compare to Al-ghazi tractors.Price Earnings RatioMTL PE ratio is increasing which shows that it is faster growing and less risky in the genius that they fulfil all the risky through the return. On the other hand Al-ghazi shows decreasing trend which shows that they are risky, except it is proved above that MTL is super risky as compare to Al-ghazi but MTL cover the risk through the return as compare to Al-ghazi so it could not be wrong to say that MTL is faster growing and more profitable as compare to Alghazi tractors.Dividend Payout RatioMTL Dividend payout ratio is increasing which shows that they are not retaining earning and paying more dividends in cash rather than retaining them. Other the other hand Al-ghazi is retaining more than MTL and not paying much dividend as cash.Other CompetitorsOther than these two public listed companies there is a private company with the name of Fecto Belarus Tractors which is fundamentally a private Russian company and has been working since 1962. This company has also participated in umpteen government schemes like Green tractor and Awami Tractor schemes. But this company is very small and not so much appreciated by the farmers. According to the information given on their website they halt produced only 4000 tractors in the year 2010 and 2011 (Fecto Belarus).Other than this there are few Chinese merchandise tractors but as per government rules there are very high barrier to the international tractors to support the local market. But if the Government could not able to address the problems the company is facing right now then these low price and low quality Chinese tractors will honor their way into Pakistan, which will result in the major threat to the local pains.Literature ReviewArticleTwo main tractor manufacturing units Al-Ghazi Tractors and Millat Tractors make up hang their production after plummeting of their sales as levy of 16 per centimeage GST has made the farm machinery costlier and Zarai Taraqiati Bank Limited has stopped tractor loans to the cash starving farmers for the past two years.Millat Tractors Limited and Al-Ghazi Tractors Limited write up for virtually all of efforts yearly output of more than 72,000 tractors.A senior executive of Millat Tractors told Business Recorder here on Friday that tractor sales nosed down to 12,000 from July to declination 2011 as against 30,000 tractors during corresponding period of last year. The industry sold 70,770 tractors from July 2010 to June 2011, he added.He said tractor manufacturers have suspended procurement of parts from their vendors as there are already several thousand unsold tractors dumped at their plants and countrywide dealership network. Tractor prices surged by Rs100,000 to Rs. 200,000 a piece depending on engine gymnastic horse power after im stead of 16 per cent GST in march last year plunging the industry in turmoil and endangering investment of billions of rupees, he added.He said since ZTBL had suspended credit to farmers for purchase of tractors for two years and high interest rate of commercial banks loans, tractors are being purchased only by those limited number of affluent growers who pay net cash. He lamented that prices of cotton have suddenly fallen to a smart low, farmers are not getting payment of sugarcane produce in cash, on the contrary, prices of fertilisers and other agri-outputs have skyrocketed, therefore the cash deficit small farmers have no money to purchase tractors.The executive suggested that the Punjab government should provide tractors to the unemployed people instead of taxis as a tractor is economically more useful and business generator than a car/taxi Pakistan railroad tie of Automotive Parts and Accessories Manuf acturers Manufacturing held an emergent meeting here on Friday to canvass the socio-economic impact of tractor manufacturing units closure in the short and long run as they have stopped buying parts of tractors from the vendors spread all over the country.Talking to this scribe PAAPAM chairman Nabeel Hashmi said that thousands of auto parts manufacturing units which provide 92 percent parts to the tractor industry are laying off their 0.5 million workers after closure of tractor manufacturing units.He said imposition of 16 percent General Sales Tax has not only ruin the tractor manufacturing industry but has also had fatal repercussions on the agri delivery and engine room and vending industry. Hashmi pointed out that due to decline in tractor sales, the government is not getting any additional revenue, therefore it should conterminously withdraw this tax to make cost of tractors affordable for overwhelming majority of small farmers who own less then 12 acres land.PAAPAM chairm an warned that as tractors are of prime importance to the agricultural sector itself, the agriculture and rural economy would grossly suffer with dangerous consequences if the government did not take immediate remedial measures (Goraya, 2011).ExplanationIn this article Mr. Goraya told about the effects of public sales tax on the sales of the tractors. According to him the increase sales tax reduces the sales of the tractors in the country. Moreover the Zarai Tarakiyati bank was is responsible to give the loans to the farmers for the purchase of the tractors along with the other agricultural tools also stopped large loans to the farmers due to which only those farmers who could afford the purchase of the tractors on the full cash basis could buy the tractors. This had the very adverse effects on the tractors industries as because of this the inventories which are unsold increased and many units goes unsold. Due to the increase in the taxes and the non availability of the loans the amount of the unsold tractors increased from 12000 units to 30000 units. Moreover because of the GST the prices of the tractors increases by 200000 rupees because of which farmers who were dependent on the loans, are now unable to purchase the tractors due to which the sales goes down, with the decrease in production. According to the sales person of millat tractors limited the production of millat tractors decreased from 40000 to 32000 units because of the last year unsold inventory. Moreover in the article it is suggested that except giving the yellow cabs schemes, government should provide tractors to increase the employment and to save the industry the government should reduce the taxes so that this automobile industry could move forward with any threat.ArticleThe last few years have been great if you were a tractor manufacturer. The industry has grown by a CAGR of more than nine per cent annually over the last quintuplet years with the exception of FY08 when it registered ne gative growth. This is on the back of a sum up deficit whereby the demand for tractors and agricultural implements (taken on a cumulative basis when we talk about tractors) has been racing despite the hullabaloo of structural weaknesses in economy. This is because the local tractor industry is a derivative of the agricultural sector which forms the pricker of our economy and is the leading source of employment for our labor force. Therefore, as the world grows, which it will regardless of the era in question demand for agricultural produce will grow, resulting in continuous demand for tractors in Pakistan. The linkage between tractors and the agriculture sector is therefore clear for all to see. Previously, industry growth was thought to be relatively immune from decelerating trends in agriculture a view which was given life by observing FY09 and FY10 when the industry grew 13 per cent and 14 per cent respectively despite downswing in the agronomy with in-turn depressed growth r ates (four per cent and two per cent respectively). Any good analyst would surely decipher that this is not a concrete relationship as sooner or afterward any business/industry will be affected by the economic environment it operates within. And it now has. The imposition of 17 per cent sales tax in March 2011, coupled with declining agro product prices which dented farmer income, will start taking its toll on the industry and its participants. The late notice sent to the KSE by one tractor manufacturer (Al-Ghazi tractors) substantiates this view pursual the imposition of 17 per cent sales tax in March 2011 tractor bookings started falling Impact of 16 per cent sales tax on tractors, announced in the Financial load of the year 2011-2012, continues to jeopardise the companys sales. This has been bollix up further by the fall in cotton pricesThere are two main players in the tractor manufacturing industry, namely Millat Tractors Limited (MTL) and Al-Ghazi Tractors Limited (AGTL), which account for virtually all of industry output. Of these, MTL, with its popular brand Massey Ferguson, holds 61 per cent market share in terms of total tractor sales and has go through significant growth in the turnover since FY07. The company has developed a track of breaking records by achieving an off-take of 30,244 in FY09 and then surpassing it in the subsequent year to 40,836 tractors. As per the official statistics growd by the Pakistan Automobile Manufacturers crosstie (PAMA) the company has achieved sales of over 42,000 tractors in FY11 while the total tractor industry stood at 70,000 tractors sold during the year. Advanced bookings a measure often used to gauge demand increased by 81 per cent during FY10 40,836 tractors pre-booked in FY09 to 74,000 tractors pre-booked during FY10. This figure is expected to drop as substantiated by the press release given above. Talking about the tractor industry as a whole, forming a holistic view of the key demand drivers of th e tractor industry is imperative place INDUSTRY DEMAND DRIVERSGovernment IncentivesThe Benazir Tractor Scheme aims to incentivise the purchase of 20,000 tractors by subsidising the tractor up to 50 per cent. The program aims to provide a subsidy up to Rs200,000 per farmer leading to more affordable tractors. Given the tight fiscal position of the GoP further extension/incentivisation in this program is unlikely. Therefore, we view this program wanting(p) in its true essence on account of an absence of both ability and freeness on behalf of the government to encourage farmer development.AffordabilityA 17 per cent tax levied on tractor production in the Finance Bill announced in March was initially projected to raise tractor prices by 10-15 per cent. However, after accounting for the cumulative impact of the imposition in tractor inputs as well, final tractor prices have gone up by 20 per cent. This is a serious jolt to farmers for whom tractors have gone beyond the reach of afforda bility. granger IncomeAgricultural prices had shot up in the recent past. However, they have witnessed a sharp decline inline with fall in commodity prices globally. Pakistans agricultural produce has been the same as an example, cotton prices have fallen to the 5,500 mark after seeing highs of over 13,000 per maund. This has impacted farmer income and therefore, they are less willing to spend upon tractors as they simply cannot afford to.Farmer Credit mash of loans by the Zarai Taraqiati Bank Limited (ZTBL), especially to farmers who own less than 12 acres of land, tractors are being purchased only by those who pay net cash. Given the fall in farmer income, the lack of credit in the market does not make a cash purchase executable for farmers. Indeed investment in such times is hardly the priority for farmers whose lifestyle limits him to focusing on only the necessities of life.Tractor LifeAccording to FAO, nonesuch horsepower available per hectare should be 1.4, versus the curre nt 0.9 in Pakistan. Increasing horse power utilisation would imply increasing the total number of tractors by more than 250,000 (55 per cent) highlighting the growth potential of the sector. Given the dearth in farmer awareness, a change in this trend seems unlikely.CompetitionHigh barriers to entry due to heavy capital outlay in establishing a distribution network reduce the threat of competition arising. Further, due to the high deletion levels (percentage of cost from locally manufactured inputs) soaring upto 90 per cent, Pakistani tractors trade at a significant discount to international counterparts, thereby making the import of tractors unfeasible and impractical.Given the above demand outlooks, future prospects of tractor manufacturers surely seem weak. But why should this be as appall as it sounds? Tractor manufacturers have had it good over the past few years operating at near 100 per cent utilisation levels. They have built their asset bases and have enjoyed periods of st rong profitability. Given that the two manufacturers have not been forced to engage in a price war and that both operate at nearly zero leveraging, the reserves built-up should be substantial in sustaining them through a down period. However, tractors are of prime importance to the agricultural sector itself, and while some rationalisation can be expected, a total fall from grace would have a far reaching impact on the agronomy in the long-acting run in terms of efficiency and growth (Khan).ExplanationThis article tells us that the tractor industry is the back bone for our economy. This industry was seeing the growth rate in the past but recently has to face many problems like GST, Inflation, expensive vendors. This articles also tell us that the MTL is the market leader with the 61 percent of market share as compare to its major competitor Al-ghazi, so it is in a strong position. This article also discussed different demand drivers. First of all the government support, although go vernment is claiming to help the farmers by subsidizing the tractors through different schemes but still there is a lack of commitment and care of the government towards this industry. Secondly the affordability, with the increase in the GST, farmers are unable to afford such a expensive tractor, which was available for 15 lac two years back and now it is available for 20 lac rupees. Thirdly the farmer income, with the increase in population along with rising prices it would be hard for the farmers to support their families and with the increase in the price of the tractors farmers could not buy the tractors as they also have to afford my other lives. onwards the loans, with the increase in bad debts and non performing loans the only bank for the farmers i.e. Zarai Tarakiyati bank stopped giving loans and increased their interest rates so farmers are unable to get the loans for the purchase of the tractors, this also multiply the difficulties for the farmers. Lastly the competitio n, as there are high barriers of entry to international firm to enter into the Pakistan market no intern