Engineering Post Report
The tractor industry is a success story of Pakistan’s manufacturing sector. The industry has established itself on firm footing by achieving more than 90 per cent localization in the production of tractors.
The country is not only meeting the local demand for tractors effectively but also producing exportable surplus as well. Given the fact that Pakistan was a net importers of tractors a few years back and had imported US$ 195 million worth of tractors in 2017, it is indeed quite commendable that the country had now exported tractors to the tune of US $ 47 million in FY2021. During July-March FY2022, Pakistan’s exports of tractors have been US $ 29.9 million, according to the figures available from official quarters concerned.
Pakistan manufactures the world -renowned Massey Ferguson and New Holland Tractors under license from the parent companies. Due to the high level of localization so achieved, Pakistan’s low priced tractors are well -received in Afghanistan and African countries. Botswana, Nigeria and Kenya have emerged as the largest export destinations for tractors. Most of the tractors in Pakistan have engine powers between 50-100 HP.
The burgeoning demand in the local market has also spearheaded the production of tractors in Pakistan. During July 2021-April 2022 , a total of 47364 units of tractors were manufactured in Pakistan while in the same period last year, 41589 units were manufactured. A total of 50,486 units were manufactured in the previous fiscal year.
The tractor industry has also promoted the growth of allied industries. For example, the iron and steel sector are the major suppliers of raw material to the tractor industry and its growth hinges on tractor production in Pakistan. Furthermore, tractor parts and raw material are also being exported worldwide as the allied industries are gradually finding their own feet.
The Agriculture Machinery sector, more specifically the tractor industry, is also promoting the development of Small and Medium Enterprises (SMEs) in the engineering sector. Aside from from a few big names, most of the manufacturers are small small businesses that are quite successfully meeting the local demand . Some of these players have also established themselves in exports. They manufacture tools and implements that are attached with tractors such as a front loaders etc. These implements are considered complementary parts of tractors and are essential for tillage and harvesting.
In the Engineering and Healthcare Show, organized by the Ministry of Commerce and Trade Development Authority of Pakistan (TDAP) only couple of months back in February 2022, Pakistan’s tractors and agriculture machinery were in the limelight. The interest of the foreign delegates to the Show could well be gauged from the fact that two deals worth more than US $ 200,000 were finalized on the spot. Pakistan’s tractor exports are most likely to grow in the near future.
