Agricultural Farm Mechanization Project

Launched in fiscal year 2025-2026, the Agricultural Farm Mechanization Project in Pakistan is a major initiative of the Punjab Government. This scheme is a part of a larger strategy to modernize farming through technology, increase productivity, and reduce the dependency on labor.

Key Features of the Agricultural Farm Mechanization Project

• Total Project Cost:Approximately PKR 7 billion over three years
• Annual Allocation:PKR 700 million for the first year (2025-26)
• Implementation Period:2025-2028
• Primary Objective:To provide farmers with access to modern machinery and equipment, enhancing efficiency and reducing the reliance on manual labor

Target Beneficiaries

• Small and medium-sized farmers: Those who have limited access to modern farm equipment.
• Agricultural service providers: Individuals and groups that offer mechanized services for other farms.

Financial Support Mechanism

• Subsidized loans: Through baks, farmers and service providers are eligible to receive interest-free loan up to 50 million PKR.
• Loan Use: Funds can be used to purchase machinery, such as combine harvesters and tractors.

Eligibility Criteria for Farmers

1. Owns a tractor with a minimum of 50 HP (except for self-propelled machinery).
2. Owner/tenant of agricultural land with a maximum or minimum of 25 acres in the canal irrigated areas and a maximum or minimum 50 acres in Barani zones.
3. Undertakes to provide services on a rental basis to other farmers in a time frame within the project period.
4. Has not requested machinery and equipment under the scheme from any other Markaz/District in Punjab.
5. The farmer must book the machinery and implements from pre-qualified companies within 10 days after receiving the allotment letter. Failure to do so may result in the cancellation of the financial assistance offered under the scheme. This cancellation will not be challenged by any court and the subsidy awarded to the next farm according to merit list.
6. During the first four (04) year period, you will not sell, transfer or give possession of any machinery to anyone.
7. Accepts to receive training for a day in operation, maintenance, repair and troubleshooting by the Assistant Agricultural Engineer / Director Agricultural Engineering concerned District.
8. Will not challenge the decision of the allotment panel in any court.

Expected Results

• Productivity Increase: Improved efficiency in the land preparation, planting, and harvesting processes.
• Reduction of Cost: Lower operating costs as a result of the use modern machinery.
• Work Optimizatio Reduces dependency on manual work, and addresses labor shortages.
• Sustainabilt : Promotion of sustainable agricultural practices through the adoption and use of efficient technologies.

Implementation Strategy

• Pilot Phase: This program will begin as a pilot in selected regions with plans to expand based on the initial results.
• Campaigns of Awareness The Agriculture Department will inform farmers about the benefits of the scheme at divisional levels.
• Monitoring: Assessments to ensure efficient use of resources, and the achievement of objectives.

Additional Resources

Visit the Agriculture Department Punjab’s official website for more information:- https://agripunjab.gov.pk/

How to Apply

The Director General Agriculture (Field), Punjab Lahore will announce the schedule for submission of applications in the press if he requires financial assistance. The applicant will submit a complete application (on stamp paper worth Rs. The applicants will submit applications complete in all respects with an undertaking (on stamp paper of Rs. 100) The applications will be collected by the Assistant Agricultural Engineer in Field / Assistant Director Agricultural Engineering concerned district, who will keep a record of all applicants.