Engineering Post Report
Farm mechanization is an important element for accelerating growth in the agriculture sector and its lack is a main constraint in increasing agricultural productivity in the country.
The federal government has continued the relief package that allows import of farm machinery and equipment at reduced tariff, Custom Duty 0-2 per cent and General Sales Rax (GST) 07 per cent, for encouraging mechanized farming in the country.
The domestic tractor industry is playing a significant role in fulfilling the requirements of tractors. The number of operational tractors in the country is around 612000 resulting in availability of around 0.09 horsepower (HP) per acre against the required power of 1.4 HP per acre.
During July 2020 to March 2021, total tractor production in the country was 36653 compared to 23266 produced last year indicating commendable 57.6 per cent increase. The increase in tractors production was largely due to an improved liquidity position of farmers.
M/s Al-Ghazi Tractors Limited had produced 7197 tractors of 11 models of different HP out of which 6198 were reportedly sold during the period under report.
M/s Millat Tractors Limited had produced 25913 tractors of nine models of different HP out of 25915 were sold during the period.
On the whole, both the two local tractors manufacturing entities had produced total 33110 tractors out of which 32113 were sold.
Prices inclusive of tax of all models ranged from Rs 945000 to Rs 2152500 for all models of HP produced by both Al-Ghazi Tractors Limited and Millat Tractors Limited.
