Tractor industry was now fully geared up to face challenges expected as a result of WTO and Safta, because free trade regime that was eagerly awaited would provide an access to bigger markets.
Laeequddin Ansari, Director Marketing of Millat Tractor Limited, expressed these views while talking to Business Recorder here on Wednesday.
He maintained that highly competitive prices of Pakistani tractors coupled with international quality standards were two of the fundamental reasons for being confident to take WTO and Safta as an opportunity rather than a threat.
"This could only be achieved as a result of high volumes during last few years which has encouraged local manufacturers to make investments, to further improve quality, productivity and competitiveness in the international market," he added.
According to him, a large number of tractors being produced in Pakistan were being exported by trading houses to African countries, Bangladesh and Sri Lanka, competing against import from other countries including West Europe and America.
Neighbouring Afghanistan use almost 100 percent Massey Ferguson Tractors produced in Pakistan. Due to very competitive prices of Pakistani tractors, it was hoped that exports from Pakistan would continue to grow.
Laeequddin said that during last five years the annual production of tractors has ranged between 28,000 and 30,000.
Last year, the production was raised to above 36,000 units, thereby substantially contributing towards government endeavours to promote agriculture sector. "It was the tractor industry, which created a sound vending industrial base and the corresponding infrastructure needed to support supply chain.
The vending industry, developed by tractor industry acted as the technology base for manufacturing of automotive components and defence needs," he added.
He stated that tractor industry has about 250 industrial units supplying components and over 100,000 people were directly or indirectly employed while a much larger figure is involved in the supply of raw materials, transportation, workshop services, etc.
He was of the view that the local tractor industry has since crossed the take-off stage and developed a wide range of tractors suitable for our conditions and as prevalent in other developing countries.
He said that these tractors were sturdy, easy to operate and easy to repair, and a very high local content of up to 90 percent has been achieved in most popular 50 horsepower tractors while it ranges between 60 to 75 percent in other models of tractors. The high-tech components like engine block and head including their castings have been localised, he added.