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Sheikh Alauddin said: “We are ready to invest in a joint venture together with you. We would like to discuss possible cooperation terms soon in order to sign the contract as soon as possible.” The Industry Minister suggested considering placing the manufacturing site in a special economic zone in Punjab Province. “If the assembly enterprise is located in such a zone, we are also ready to consider the reduction of taxes and duties,” stressed the official.

At present an estimated 700,000 tractors are in use in Pakistan. The market is estimated to require 85,000-90,000 tractors per annum.

During the talks Sheikh Alauddin noted that MTZ tractors are well-known in Pakistan. The local farmers value them for their quality and durability.

In turn, MTZ Director General Fyodor Domotenko suggested selling farming technologies to Pakistani farmers in addition to assembling the tractors. “If we invest in the joint venture, it will only be logical to offer some technology to farmers instead of simple tractors. We could offer sowing machines, winnowing machines, ploughs, and trailers,” noted the executive.

The sides also agreed that the future enterprise may assemble utility vehicles in addition to agricultural machines. “We are ready to consider the existing manufacturing sites and introduce cutting-edge technologies,” stated Fyodor Domotenko.

Belarusian MTZ started selling tractors to Pakistan in 1955, with over 130,000 tractors shipped since then. An enterprise to assemble MTZ tractors was opened at premises of the Orient Tractor factory in Pakistan in 2015. The enterprise is capable of turning out about 4,000 tractors per annum.