Pakistan’s tractor sales in 2025 ‘lowest in two decades’

Pakistan recorded its lowest tractor sales in nearly two decades in 2025, underscoring the strain on the country’s agriculture sector despite its central role in the economy, according to a report by Topline Securities.

Tractor sales during the 2025 calendar year fell to 24,724 units, down sharply from 39,480 units a year earlier, the report said. The decline marks the weakest annual performance in almost 20 years. By comparison, tractor sales peaked at 66,369 units in 2017.

Topline said demand remained subdued due to weak farm economics, driven by depressed crop prices and rising input costs, which eroded farmers’ purchasing power.

Sales in December alone dropped 52% to 3,390 units, compared with 7,030 units in December 2024. During the first six months of the current fiscal year, tractor sales declined 26% to 12,929 units, the report added.

Looking ahead, Topline expects a moderate recovery in 2026, projecting tractor sales growth of 15 to 20% on the back of gradually improving farm economics and a more stable inflation environment.

The brokerage noted that broader trends in the auto sector appear more encouraging in the near term.

According to JS Global, auto sales are expected to maintain momentum, supported by improving consumer confidence, macroeconomic stability and easing financing conditions.

Auto loans rose 35.5% year-on-year in November 2025, marking the tenth consecutive annual increase, JS Global said.

However, analysts cautioned that the longer-term outlook for the auto industry remains uncertain. The International Monetary Fund’s push to gradually reduce weighted average tariffs on imported vehicles is expected to lower protection for local manufacturers, increasing their exposure to foreign competition.

For the agriculture sector, analysts said the pace of recovery in tractor demand will largely depend on improvements in farm incomes, input costs and access to affordable financing.