Overview
Table: Total Market Size for Agricultural Machinery and Equipment, Units: $ millions
2022 | 2023 | 2024 | 2025* (Estimated) | |
| Total Local Production | 1,299.35 | 1,380.57 | 1,388.30 | 1,444.32 |
| Total Exports | 41.61 | 44.21 | 44.46 | 46.24 |
| Total Imports | 168.79 | 179.33 | 180.33 | 187.54 |
Imports from the US
| 7.56 | 7.93 | 8.42 | 8.84 |
| Total Market Size | 1,426.53 | 1,515.69 | 1,252.43 | 1,585.62 |
| Exchange Rates | 210.17 | 286.58 | 278.02 | 285.35 |
* Sources: Pakistan Economic Survey 2024-25, Ministry of Finance, Government of Pakistan, Pakistan Bureau of Statistics, Government of Pakistan, Local trade associations and market experts.
Pakistan’s agriculture sector is the mainstay of the economy and a primary source of livelihood for much of the population. During FY 2024-2025, the agriculture sector contributed 23.5 percent to Pakistan’s GDP and employed 37 percent of the total workforce, posting 0.56 percent growth from 2024 to 2025. According to industry sources, the total land area under cultivation is approximately 48 million hectares, about 2 percent less than the previous year. The agricultural machinery sector is valued at roughly $1.1 billion and includes tractors, harvesters, irrigation equipment, and other small-scale machinery. The Economic Survey of Pakistan identifies agricultural machinery as a key driver of growth and sustainability in the sector. To support mechanization, the Government of Pakistan is supporting farmers by allowing the import of farm machinery at a reduced tariff (customs duty between 0-2 percent and general sales tax at 17 percent), to encourage mechanization adoption among local farming communities.
Five countries supply more than 70 percent of Pakistan’s imported agricultural machinery and equipment: the United States, Japan, Italy, Germany, and China, with the U.S. holding an estimated 25 percent market share.
Machinery and Equipment
Pakistan’s domestic production of tractor units declined by approximately 34.6 percent from 36,385 units to 23,814 units during FY 2024-25. According to local industry experts, there is a considerable gap in the per-acre availability of tractors and other agricultural machinery in Pakistan. Approximately 714,447 tractor units are operating in the country, resulting in the availability of approximately 0.09 horsepower (HP) per acre against the required power of 1.4 HP per acre.
Tractors produced locally are under license agreements with several foreign companies, including the United States, Belarus, Turkey, and China. In addition to tractors, the United States and the EU export used agricultural machinery to Pakistan, including application equipment and smart irrigation systems. The domestic industry has the indigenous capacity to produce agricultural machinery and equipment to meet only 15 percent of the country’s total requirements. Production is expected to remain constrained over the next three to four years, mainly due to multiple macro and microeconomic factors, including the lack of availability of raw materials, limited project financing options, an untrained workforce, and lack of R&D facilities.
Most of the locally produced machinery is based on outdated technology and is inefficient. A wide variety of more sophisticated equipment is imported, but local farmers prefer replacement and spare parts manufactured locally due to the relatively low cost of domestically manufactured equipment.
Leading Sub-sectors
To better develop the agriculture sector, the Government of Pakistan, both at the federal and provincial levels, has launched several programs and incentives to modernize and expand existing capacity. These initiatives include easy to access long-term credit facilities, farmer education programs, and subsidized inputs. In addition, the government, through budgetary support programs, offers low taxation programs on agricultural machinery to boost agricultural modernization.
The most promising agricultural machinery export prospects for FY 2026 are:
- Tractors
- Combine Harvesters
- Cultivators
- Cultipacker
- Harrow
- Subsoiler
- Rotator
- Broadcast seeder
- Planter
- Seed Driller
- Fertilizer Spreader
- Trans-planter
- Drip Irrigation Systems
- Weight Sorter
- Round Baler
- Sprayers
- Irrigation Pumps
- Pickers, Fruits, Hand, Base Metal
- Diggers, Seeders
- Sprinklers
- Cotton Gins and Parts
Opportunities
With an estimated 48 million hectares of arable land, Pakistan can improve the efficiency, yield, and productivity of the agriculture sector with more advanced farming equipment and machinery. With additional modern farming equipment, Pakistan can increase yields and exports of primary crops, fruits and vegetables, poultry, and dairy products, and in doing so, become an important supplier for the region and expand into Central Asia. To achieve this objective, the government is encouraging private sector investment by offering several direct and indirect assistance programs. Both the public and private sectors have, or are in the process of taking advantage of, government incentives by setting up small- to large-scale projects, after-sales service facilities, and training centers, as well as by strengthening marketing channels. According to industry experts, the local market will continue to offer sizeable business opportunities for local and foreign companies for the next several years.