The Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) has lauded Maryam Nawaz’s recent agricultural initiative to provide subsidized tractors to farmers in Punjab. In a recently held executive committee meeting, PAAPAM’s leadership, including Chairman Mr. Abdur Rehman, Senior Vice Chairman Mr. Mumshad Ali, and Vice Chairman Mr. Taufiq Sherwani, expressed their support for the scheme, noting its potential to significantly enhance Punjab’s agricultural economy, thereby contributing to the overall national economy.

The leadership drew parallels between this initiative and similar efforts made by the previous PML-N government under Mian Muhammad Shehbaz Sharif. They emphasized that the current government’s approach of directly supporting farmers through subsidies is far more effective than the previous practice of providing support via wheat price guarantees, often resulting in inefficiencies, corruption, and misallocating funds.

PAAPAM representatives highlighted the broad impact of this subsidy, which extends beyond agriculture to bolster Punjab’s industrial base. The scheme supports over 250 part suppliers to the two major tractor assemblers in the province, Millat Tractors and Al-Ghazi Tractors. These companies are responsible for producing some of the most affordable and durable tractors in the world, with a strong sales and service network across Pakistan. The tractor industry in Punjab, employing thousands of skilled and semi-skilled workers, is a cornerstone of Pakistan’s engineering sector, contributing to the domestic market and exports and other industries, including automobiles, motorcycles, and home appliances.

Mr. Mumshad Ali noted that the tractor parts industry’s contribution to the national economy is often underappreciated. He emphasized Pakistan’s engineering sector’s significant progress since independence, evolving from a cottage industry into a vital component of the national economy.

However, Mr. Ali also expressed concern over the recent drop in tractor bookings following the announcement of the subsidy. Farmers anticipate the 1.5 million PKR subsidy per tractor, applicable to 20,000 tractors across Punjab’s districts. He suggested that the subsidy amount be reduced to 1 million PKR, allowing for an increase in the number of subsidized tractors to 30,000 units per annum. He also proposed that this subsidy be a permanent feature of the Punjab finance bill.

PAAPAM has decided to formally approach the Punjab Finance and Agriculture Ministers with these recommendations to ensure the scheme’s long-term success and broader impact on Punjab’s agricultural and industrial sectors.