Food ministry proposes establishment of CKD manufacturing plant for high HP tractors

The Ministry of National Food Security and Research has recommended the establishment of a completely knocked down (CKD) manufacturing plant for high horsepower (HP) tractors in Pakistan, alongside small to medium-power-range units. 

According to a report published by The Express Tribune, a study commissioned by the food security ministry, titled “100+ HP Tractors Demand and Supply Assessment,” highlighted the growing demand for high HP tractors in Pakistan. Conducted by consultant AT Kearney under the Public Private Partnership Authority (P3A), the study suggested that the upper bound market potential for high HP tractors could reach 2,800 units over five years, with annual demand fluctuating between 100 and a few hundred units.

The ministry is seeking government backing in areas like policy support, financing, regulatory affairs, and vendor development to ensure the successful establishment of the facility.

However, the study identified several barriers to the adoption of high HP tractors, including their high purchase costs, fragmented landholdings, limited access to credit, and a lack of compatible heavy-duty implements. 

Additionally, there is a gap in after-sales service and challenges in vendor development, import dependency for core components, insufficient government incentives, and uncompetitive cost structures.

While the study emphasized the strategic potential of Pakistan’s high HP tractor market, it warned that this sector should be seen as a medium-to-long-term growth opportunity rather than an immediate mass-market prospect.

On August 4, 2025, the Ministry of Industries, which is also involved in the process, requested specific views on the study from the Ministry of Food Security, Green Corporate Initiative (GCI), and Margla Heavy Industries/Heavy Industries Taxila.

The food ministry responded by recommending the immediate focus on establishing a CKD manufacturing plant for high HP tractors. It also urged the government to support the initiative with necessary policies, regulatory measures, financing options, and vendor development programs.