Pakistan tractor sales fall to historic low in FY25

The sale of tractors in Pakistan hit a 22-year low between July 2024 and June 2025, despite 9,500 units sold through a Punjab government tractor scheme, according to data released by Topline Securities.

The sales in FY25 fell to 29,192 units, owing to poor farm economics as wheat prices fell from Rs3,373 per 40kg in June 2024 to Rs2,603 per 40kg in June this year.

During FY26, Topline Securities expect tractor sales to increase by 16% to 34,000 units as a result of the 20,000-unit tractor scheme launched by the Punjab government.

According to the analysis, the sales of Millat Tractors — which has a 60-65% market share —will be around 22,000 of the total 34,000 units. For FY27, Topline Securities said, the tractor industry growth is estimated to be at 30% with 44,000 units sold. Millat Tractor is expected to sell 28,000 units.

Impact of floods

The analysis said that recent floods are likely to weigh on the purchasing power of farmers.

In 2011, following the floods, tractor sales fell 3% and then 28% in FY12, before stabilizing in FY13. Post 2022 floods, tractor sales fell by 48% in FY23, but recovered sharply in FY24.

This previous trend suggests overall sales are likely to remain dismal.

During the two months of the fiscal year (July-August), tractor sales declined by 47% to 2,191 units, where Millat Tractors' sales dropped by 15% to 1557 units and Al Ghazi's dropped by 73% to 634 units.