LAHORE: The governments of Punjab and Sindh have announced to launch tractor schemes in their provincial budgets for financial year 2015-16, which will boost the tractor industry as the collective subsidy will be given to more than 55,000 units.
The Punjab government allocated Rs5 billion for the distribution of 25,000 tractors, while the Sindh government will give Rs200,000 to Rs300,000 subsidy to about 29,089 tractors. This means a total of 54,089 tractors would be made available at subsidised rates.
Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) Chairman Siddique Misri also lauded the step taken by the provincial governments, which is also boost the agricultural sector. However, he suggested both the governments to divert funds of tractor schemes to the total production capacity of the country, as giving subsidy on each tractor to avoid the misuse of scheme.
These schemes will help sales and its impact will be felt in downstream industries as well as in the output of the agriculture sector, he said, adding that the tractor industry in Pakistan encompasses high localisation levels. As such, the companies serving as vendors to the tractor industry are also expected to benefit from the announced scheme, he maintained.
