Pakistan's tractor industry recorded a decline in both production and sales during the first ten months of fiscal year 2025-26, even as broader agricultural machinery manufacturing expanded sharply and fertilizer production posted exceptional growth.

According to data released by the Pakistan Automotive Manufacturers Association (PAMA), tractor assembly stood at 24,209 units during July-April FY2025-26, compared with 25,144 units produced during the corresponding period of the previous fiscal year.

Sales followed a similar trajectory. A total of 23,143 tractors were sold during the first ten months of the current financial year, down from 24,832 units in the same period a year earlier, indicating softer demand across the sector.

The decline was evident among major manufacturers. Output by Al-Ghazi Tractors fell to 8,746 units from 9,428 units during the corresponding period last year. Sales of FIAT tractors also dropped, reaching 7,899 units compared with 9,445 units recorded a year earlier.

Production by Massey Ferguson remained relatively stable but still registered a slight contraction. The company assembled 15,463 tractors during July-April FY2025-26, compared with 15,715 units during the same period of the preceding fiscal year. Its sales also edged lower, declining to 15,217 units from 15,337 units previously.

While the tractor segment experienced a slowdown, the wider agricultural machinery industry showed markedly stronger performance. Manufacturing of agricultural equipment increased by 77 percent during the July-March period compared with the corresponding months of the last financial year. The expansion was reflected in the production of specialised farm equipment. During the period under review, 20 sugarcane machines were assembled, while wheat thresher production reached 538 units.

The broader agricultural input sector also recorded substantial growth. According to large-scale manufacturing data released by the Pakistan Bureau of Statistics (PBS), fertilizer production surged by 115.15 percent during July-March 2026 compared with the same period of the previous year.

The figures present a mixed picture for Pakistan's agricultural manufacturing landscape. While tractor assembly and sales weakened during the fiscal year, strong growth in agricultural machinery and fertilizer output points to increased activity in other segments supporting farm productivity and mechanisation. The contrasting trends suggest that although demand for tractors softened, investment in agricultural equipment and inputs continued to expand during the period under review.