Pakistan’s Millat Tractors shifts focus to new markets as exports to Afghanistan decline

With sales to Afghanistan hampered by political instability, Millat Tractors Limited (MTL), a Pakistani tractor manufacturer, is now exploring new markets, including Mexico, Africa and Sri Lanka, to sustain and expand its overseas presence.

The company’s management informed in a corporate briefing session held on Tuesday, which was attended by Arif Habib Limited (AHL), to discuss the company’s performance and future outlook.

MTL management shared that the company’s export volumes declined to 2,607 units from 2,761 units last year.

“Afghanistan was a key export market, but sales there have decreased due to political instability. MTL is focusing on new markets like Mexico, Africa, and potentially Sri Lanka to maintain and grow export volumes,” read the AHL report.

The development comes as ties between Pakistan and the Taliban-led government in Afghanistan have soured in recent months amid significant disputes over security and terrorism. Following an intense series of military confrontations and failed talks, ties remain fractured, with a ceasefire in place.

Meanwhile, MTL shared that in October 2025, sales reached 2,000 units thanks to the government’s Green Tractor Scheme, resulting in a temporary monthly increase. However, the company warned that “maintaining consistent MoM growth seems difficult”.

“The management expects some improvement next year,” said AHL.

Meanwhile, MTL management noted that the new Belarus tractors will add to market competition. “These tractors have entered the market previously, and with MTL holding a strong 65% market share in the tractor segment, management does not anticipate any significant impact,” read the report.

Millat Tractors Limited is a public limited company incorporated in Pakistan in 1964. MTL is engaged in the manufacturing and sale of internationally acclaimed tractors, diesel generating sets and prime movers, diesel engines and forklift trucks.

MTL is also involved in the sale, implementation and support of Industrial and Financial System (IFS) applications locally and abroad. As of June 30, 2024, the company has an annual capacity of 30,000 tractors per annum on a double-shift basis.