Made in Pakistan – Tractor Industry-A Success Story

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.