Punjab govt’s green tractor scheme to boost agriculture: PAAPAM

LAHORE: The Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) has praised the new agricultural initiative launched by Punjab Chief Minister Maryam Nawaz Sharif, which aims to provide subsidized tractors to farmers in Punjab.

During a recent executive committee meeting, PAAPAM leaders, including Chairman Abdur Rehman, Senior Vice Chairman Mumshad Ali, and Vice Chairman Taufiq Sherwani, expressed strong support for the scheme. They highlighted its potential to significantly boost Punjab’s agricultural sector, thereby benefiting the national economy as a whole.

The PAAPAM leadership compared this new initiative with similar programmes from the previous PML-N government under Shehbaz Sharif. They stressed that the current approach of offering direct subsidies to farmers is far more effective than the previous method of supporting farmers through wheat price guarantees, which often led to inefficiencies, corruption, and mismanagement of funds.

The representatives from PAAPAM emphasized the wide-ranging benefits of the subsidy, which not only supports agriculture but also strengthens Punjab’s industrial sector. The scheme aids over 250 parts suppliers to the province’s two major tractor manufacturers, Millat Tractors and Al-Ghazi Tractors.

These companies produce some of the most cost-effective and reliable tractors globally and have a robust sales and service network throughout Pakistan. The tractor industry in Punjab, employing thousands of skilled and semi-skilled workers, is a key part of Pakistan’s engineering sector, contributing significantly to both the domestic market and exports, as well as to related industries like automobiles, motorcycles, and home appliances.

Mumshad Ali pointed out that the economic contribution of the tractor parts industry is often overlooked. He noted the substantial development of Pakistan’s engineering sector since independence, transforming from a small-scale industry into a crucial element of the national economy.

However, he voiced concerns about the recent decline in tractor bookings following the subsidy announcement, as farmers await the Rs1.5 million subsidy per tractor, which is available for 20,000 tractors across Punjab’s districts. Ali suggested reducing the subsidy amount to Rs1 million, which could increase the number of subsidized tractors to 30,000 annually. He also proposed making the subsidy a permanent part of the Punjab Finance Bill.

PAAPAM plans to formally present these recommendations to the Punjab finance and agriculture ministers to ensure the scheme’s long-term success and its positive impact on both the agricultural and industrial sectors of Punjab.