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Punjab Rolls Out Record Tractor Subsidy Programme

Punjab Rolls Out Record Tractor Subsidy Programme Targeting 30,000 Farmers

The Punjab provincial government has unveiled what it calls the largest tractor distribution programme ever implemented in Pakistan, committing to supply 30,000 tractors to farmers across the province. The initiative is positioned as a major step toward expanding on farm mechanisation and improving long term agricultural productivity.

According to Punjab Chief Minister Maryam Nawaz Sharif, the programme is designed to strengthen farmers economically while giving them access to modern, productivity focused machinery.

First and second phases focus on 50 to 85 horsepower tractor segments

Under the first phase of the Chief Minister Tractor Programme, 10,000 tractors in the 50 to 75 horsepower range have already been delivered to farmers. This segment targets small to mid size holdings, where basic mechanisation can deliver immediate gains in efficiency and timeliness of field operations.

The second phase covers another 10,000 tractors, this time in the 75 to 85 horsepower class. Allocation under this phase was carried out through a transparent balloting process, with deliveries currently under way. The provincial government is providing a subsidy of up to Rs1 million per tractor in this category, supported by a total budget allocation of Rs10 billion.

January launch planned for smaller tractors and high horsepower financing

Looking ahead, the Punjab government plans to open applications in January for a third phase focused on 50 to 55 horsepower tractors. This move is expected to further broaden access for smaller farmers who are entering mechanisation for the first time.

In parallel, tractors in the 100 to 120 horsepower range will be offered through the High Tech Farm Mechanisation Financing Programme. These higher capacity machines will be available via interest free loans, aimed at commercial scale producers seeking to modernise cultivation, tillage, and transport operations.

Mechanisation strategy links machinery access with yield growth

Provincial officials say the programme goes beyond equipment distribution, forming part of a wider strategy to support farmers from planting through to crop marketing. By improving access to reliable tractors across multiple horsepower segments, the government expects gains in crop yields, operational efficiency, and overall farm self reliance.

From a tractor market perspective, the scale and structure of the programme is likely to have a measurable impact on regional demand patterns, particularly in the 50 to 85 horsepower classes that dominate mixed crop farming in Punjab.

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