LAHORE: The Punjab government allocated Rs 5 billion for the distribution of 25,000 tractors, while the Sindh government also arranged 29,089 tractors with a subsidy of Rs 200,000 to Rs 300,000 on each unit. This means a total of 54,089 tractors would be made available at subsidised rates in the market.
These tractor schemes will help in the sale of these units; thus, its impact will be felt in downstream industries as well as in the output of the agriculture sector, said an official of the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) while talking to Customs Today.
He further said that prime beneficiaries of the development will be leading tractor manufacturers, Al-Ghazi Tractors and Millat Tractors. The proposed schemes will provide a notable uplift of 118% in volumetric sales to the industry.
He said that considering the last tractor schemes as a proxy for the upcoming ones, sales of Al-Ghazi Tractors and Millat Tractors will enhance by 20,500 units and 17,000 units, respectively. The lower impact on Millat Tractors is only because the company has the maximum capacity to produce 45,000 tractors.
Lahore Chamber of Commerce and Industry Steering Committee on Bio-Technology Chairman Dr Shahid said that the availability of subsidised tractors to farmers will also increase agricultural production in the country. This increase in production can also enhance exports of agri products, which will subsequently help earn foreign exchange, he said.
