Tractor firm targets African, Asian markets

Tech partners help pave way for exports to overseas markets

LAHORE:

One of Pakistan’s biggest tractor manufacturers is planning to enter the markets of East African and Central Asian countries as it has sufficient modern technology to capture the export markets. “If we talk about the export sector, the tractor industry is not that strong but its technology partners have helped pave the way for exports by providing access to three overseas markets,” said an executive of the tractor company.

Al-Ghazi Tractors Limited Chief Executive Officer Malik Ehtisham said “we are going to launch our export drive to the East African and Central Asian countries like Kazakhstan and Tajikistan”. These countries have a lot of potential and “we are aiming to expand our export business to these countries. For this, we are deputing some export-focused experienced persons”, he added. The company aims to press ahead with the export plan with Pakistan-based technologies, which are suitable for the farmers and the soil condition of export destinations, Ehtisham said.

The tractor industry, like other sectors, is passing through a difficult time despite that the production is on the rise. Industrial and vendor issues pose some challenges. The industry has achieved 90% localisation of tractors. According to the Pakistan Automobile Manufacturers Association, the production of tractors in fiscal year 2021-22 increased by 16.01% to 58,880 units against 50,751 units in FY 2020-21. Tractors are considered an important component of Pakistan’s agricultural economy. The rise and fall of tractor production portrays the state of agriculture in the country. Governments often provide direct or indirect subsidies on tractors, so the farmers may feel comfortable.

“We have always played a significant part in the government’s initiatives and I request the government to look into the export industry and how incentives can be provided,” Ehtisham said. More than 90% of tractor parts are produced in Pakistan and it is a big achievement, he underlined. He cited that work is underway to localise parts such as fuel injection pumps, which are not available in Pakistan. “We are keeping imports at extremely minimal levels.” “In the previous eight to nine months, around 50,000 tractors were sold in the market, of which we had 46% market share. In the last 10 years, we have produced more than 400,000 tractors,” the CEO said.