Al Ghazi CEO Urges National Mechanization Policy to Save Agriculture Sector
Pakistan's tractor industry is facing an alarming downturn, with sales plunging 63% below the eight-year average, according to Sakib Eltaff, CEO of Al Ghazi Tractors. In an interview with Business Recorder, he pointed to economic instability, poor taxation policies, and the absence of a national agricultural mechanization strategy as key contributors. He stressed that this decline threatens Pakistan’s farming-based economy, especially as agriculture contributes over 20% to the national GDP and supports nearly 300,000 livelihoods through its vast supply chain.
Eltaff highlighted that tractor sales in January and February 2025 hit record lows—43% down from the previous year—worsened by delayed deliveries under Punjab’s Green Tractor Scheme. He called for a shift from reactive to long-term policies, citing that Pakistan’s mechanization levels (0.8 HP per acre) lag behind the FAO’s recommended standard of 1.4. He emphasized the role of financial institutions, manufacturers, and policymakers in collaboratively building sustainable solutions that include smart technologies like GPS-enabled tractors and drone-assisted agriculture.
Tractor Prices Soar as Industry Struggles with Decline, Policy Gaps & Credit Access
Despite Al Ghazi’s recent innovation in launching advanced models, including the NH 850 tractor, the industry is hampered by affordability and financing issues. With tractors starting at Rs2.5 million, farmers struggle to access credit due to informal income histories. Eltaff urged banks to develop flexible financing solutions tailored to farmers’ seasonal incomes. He warned that without a national mechanization roadmap and cohesive reform, Pakistan risks undermining food security and the future of its agrarian economy.
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