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Pakistan’s farm economy is showing fresh signs of stress. Tractor sales, often seen as a key measure of agricultural activity, have fallen to their lowest point in more than 20 years. Despite the country’s heavy dependence on agriculture, demand for farming machinery is declining, according to industry data.
Figures released by the Pakistan Automotive Manufacturers Association (PAMA) confirm the trend. In 2025, tractor sales posted their weakest performance in two decades. Compared to the previous year, 14,756 fewer tractors were sold, reflecting a sharp slowdown across the sector.
The decline became even clearer in December 2025. During the month, only 24,724 units were sold, marking the lowest December total in 20 years. By contrast, sales stood at 39,480 units in 2024, underlining how quickly the market has contracted.
The current numbers also show how far the industry has slipped from its high point. In 2017, tractor sales peaked at 66,369 units, more than double today’s level.
Industry specialists link the downturn to several pressures. Rising input costs have raised production expenses. At the same time, high interest rates have limited access to financing.
In addition, weaker farmer incomes have reduced buying power. Policy uncertainty in the agriculture sector has also weighed on investment decisions.
As a result, the fall in tractor sales is seen as a warning sign. It points to possible risks for agricultural output, rural jobs, and broader economic stability in Pakistan.
