CKD High HP Tractor Plant in Pakistan Proposed

04/10/2025

Pakistan is planning to take a big step toward self-reliance in farming machinery by producing high-horsepower (HP) tractors locally. 

The Ministry of National Food Security and Research has suggested setting up a completely knocked down (CKD) manufacturing plant, which would allow the country to assemble powerful tractors using imported parts. 

The plan also includes making small and medium-sized tractors to strengthen Pakistan’s agricultural equipment industry.

According to The Express Tribune, the proposal is based on a study titled “100+ HP Tractors Demand and Supply Assessment.” 

The study, carried out by consulting firm AT Kearney under the Public Private Partnership Authority (P3A), found that demand for heavy-duty tractors is steadily rising. 

It estimates that Pakistan’s market for high HP tractors could reach up to 2,800 units over five years, with annual demand ranging from 100 to a few hundred units.

To make the project work, the ministry is seeking government help in several key areas, including financial support, policy backing, vendor training, and regulatory approvals.

But experts warn that the plan won’t be easy to pull off. The study highlighted major obstacles such as high prices, small and scattered farmland, limited access to bank loans, and a lack of compatible heavy farming equipment. It also noted that after-sales services are poor, and local manufacturers still depend heavily on imported components. 

Without strong government incentives or a reduction in production costs, Pakistan’s tractor makers may struggle to compete on a global scale.

The report called the high HP tractor market “strategically important,” but also advised that it should be treated as a long-term goal rather than a quick win.

On August 4, 2025, the Ministry of Industries asked for feedback on the study from the Food Security Ministry, the Green Corporate Initiative (GCI), and Margla Heavy Industries/Heavy Industries Taxila.

In its reply, the Food Security Ministry strongly supported the plan and urged the government to move forward with the CKD plant. 

It also called for policy incentives, easier financing, and training programs to help local suppliers build capacity.

If the plan gets approved, it could help Pakistan cut down on imported tractors, boost local manufacturing, and make the country’s farming sector more productive. 

Still, experts say success will depend on consistent government support, careful planning, and patience — because building a strong tractor industry won’t happen overnight.

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