In a strategic move to boost the agriculture sector and strengthen local manufacturing, Pakistan’s Ministry of Industries has initiated steps toward making tractors more affordable for farmers. A high-level meeting was held under the chairmanship of Mr. Haroon Akhtar Khan, Special Assistant to the Prime Minister (SAPM) on Industries and Production, to discuss the formulation of a National Tractor Policy.
Affordable Tractors: A Priority for Agricultural Growth
During the meeting, Mr. Khan stressed the importance of affordable tractors for improving the livelihood of farmers and boosting agricultural productivity across Pakistan. He called on tractor manufacturers to submit actionable proposals to help reduce production costs and, in turn, the retail price of tractors.
“Affordable tractors are essential to support our farmers and to drive agricultural progress,” said Mr. Khan. He further emphasized that the initiative aligns with the Prime Minister’s vision to protect local industries while promoting exports and job creation.
Tractor Policy Linked to Economic Development
The National Tractor Policy is expected to serve as a cornerstone of the government’s broader economic development strategy, which seeks to harmonize agriculture, exports, and industrial growth. Mr. Khan noted that strengthening the local tractor industry would also contribute to reducing import dependency and increasing employment.
Manufacturers Share Key Challenges
During the session, tractor manufacturers voiced serious concerns regarding the current tax regime, including high General Sales Tax (GST), excessive regulatory duties, and high interest (markup) rates. Additionally, they highlighted the need for a stable and predictable policy environment to plan future investments and production efficiently.
Despite the challenges, industry stakeholders appreciated the government’s proactive engagement and Mr. Khan’s willingness to collaborate closely with manufacturers.
Job Creation Through Tractor Loan Schemes
Mr. Khan also proposed the idea of launching tractor loan schemes, aimed at empowering unemployed youth by enabling them to participate in the agriculture sector. Such programs could not only increase mechanization in farming but also offer a pathway to economic self-sufficiency for rural communities.
A follow-up meeting is scheduled for next week, where the government will further review the proposals and work toward implementing practical measures under the new policy.
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