Millat Tractors Targets New Export Markets Amid Shifting Regional Trends
Millat Tractors is now exploring new export markets as sales to Afghanistan continue to fall. The company hopes this shift will support long term growth. In addition, the move reflects changing regional dynamics and rising competition.
Exports Shift
MTL shared fresh details during a corporate briefing attended by Arif Habib Limited. The company reported a slight drop in export volumes, falling to 2,607 units from 2,761 units last year. However, it noted stronger interest from buyers in Mexico, Africa and Sri Lanka.
Afghanistan once played a key role in MTL’s export strategy. Political instability, however, reduced demand there over the past year. As a result, the company is working to diversify its international footprint to protect future volumes.
Ties between Pakistan and the current Afghan administration also remain tense. Several security concerns and unsuccessful talks have kept relations strained. Therefore, businesses have struggled to maintain predictable trade flows.
Local Sales and Competition
MTL recorded 2,000 unit sales in October 2025 due to the government’s Green Tractor Scheme. This created a temporary boost in local demand. The company, however, believes consistent monthly growth will remain challenging.
Management expects some improvement next year as new incentives and seasonal cycles support buying activity. In addition, the market will likely see more competition. New Belarus tractors have returned to local shelves, but MTL feels confident because it holds a strong 65% share of the tractor market.
Company Capacity and Operations
Millat Tractors has been part of Pakistan’s industrial landscape since 1964. The company manufactures tractors, diesel engines, forklift trucks and other equipment. It also supports Industrial and Financial System (IFS) applications in local and international markets.
As of June 2024, MTL maintains an annual capacity of 30,000 tractors on a double shift basis. This capacity gives the company flexibility as it enters new regions. For example, access to Mexico and Africa may help balance the impact of regional political challenges.
Overall, MTL aims to secure long term stability by expanding into new export markets while managing risks at home and abroad.
