Punjab Green Tractor Subsidy for Farmers: Empowering Small Scale Cultivation

Punjab’s agricultural heartbeat resonates across Pakistan and the provincial government, led by CM Maryam Nawaz Sharif, devised a bold strategy to boost productivity. The Punjab Green Tractor Scheme, especially its Phase 2 launched in mid‑2025, offers eligible farmers substantial tractor subsidies to modernize farming and uplift rural livelihoods.

Why this scheme matters

In Punjab, where smallholder farms are the backbone of agriculture, many growers struggle to mechanize due to high tractor costs. Renting is unreliable, and banks often require collateral. The Green Tractor Scheme addresses these hurdles by directly subsidizing tractors—giving farmers both affordability and ownership. It also aligns with broader development priorities, such as mechanization, climate resilience, and food securitytractors.com.pk+3cm scheme.pk+3Gotest+3.

Phase I: A huge success with lessons learned

The initial rollout covered 9,500 farmers selected through a transparent lottery system. Each received a PKR 1,000,000 subsidy toward locally manufactured tractors with 50‑85 HP power. By early January 2025, 3,973 tractors had already been delivered, with more expected by MarchProPakistani+4Business Recorder+4Punjab Government+4.

The scheme showed strong demand over 1.5 million farmers applied by October 2024, confirming both popularity and trust in the government processGeo.tv.

Phase II (2025): Bigger and more inclusive

Building on the success, Phase II expanded coverage dramatically. Starting July 2025, the plan includes 20,000 new tractors:

• 10,000 units of 50–65 HP locally manufactured, each with a PKR 500,000 subsidy
• Another 10,000 units (75 HP and above, including imported models) with a PKR 1,000,000 subsidyyoutube.com+2cm scheme.pk+2Gotest+2Business Recorder+8ProPakistani+8lcci.pk+8.

Farmers with 1 to 50 acres of land are eligible, with no application fee and full digital ballot-based transparencytractors.com.pk+5Punjab Government+5Business Recorder+5.

Who qualifies and what’s required

Eligibility criteria include:

• Permanent resident of Punjab
• Own between 1 to 50 acres of farmland
• Valid CNIC and verified land records (via PLRA)
• No pending loans or bank defaultsagripunjab.pk+4Gotest+4cm scheme.pk+4cm scheme.pk+3Punjab Government+3Gotest+3agriculturepunjab.com+1Gotest+1

Documents needed:

• CNIC, land ownership proofs, passport‑sized photo
• Confirmation from agriculture department via local office
  Note: There is no application fee; claims otherwise have been officially debunkedGotest+1agriculturepunjab.com+1cm scheme.pk+12Geo.tv+12agripunjab.gov.pk+12.

How to apply: step-by-step

1. Visit the official portal: Apply online via gts.punjab.gov.pk by registering with CNICtractors.com.pk+4Punjab Government+4Gotest+4.
2. Submit land and personal details, then upload required documents.
3. Verification and eligibility checks are handled digitally.
4. Balloting will select beneficiaries; results published on the portal.
5. Notification and next steps: Shortlisted farmers receive SMS/email and can visit appointed banks or dealerships to pay their share and receive the tractorBusiness Recorder+4Gotest+4agriculturepunjab.com+4.

Farmers without Kisan Cards still qualify and can get support via a helpline launched for inclusivitythenews.com.pk+1agripunjab.pk+1.

Benefits beyond the subsidy

• Mechanization reduces labour costs and boosts yields, especially for key crops like wheat and rice.
• Income gains: Tractors enable efficient land preparation and larger crop cycles.
• Empowerment: Small entrepreneurs and women farmers receive access they could not afford before.
• Data-driven transparency limits favoritism and misuse selection is digital and merit-based The Express TribunePunjab Government.

Early outcomes and real-world impact

Farmers from the initial phase who received tractors reported marked improvements in operational efficiency. The Punjab agriculture minister stated that mechanized cultivation helped reduce costs and increase productivity immediatelycm scheme.pk.

For example, wheat growers on 25 acres received 1,000 free tractors under a special sub-scheme, along with additional PKR 5,000 per acre cash grant, boosting morale and results in 2025thenews.com.pk.

Challenges and hotspots to watch

• There’s controversy over exclusion of imported tractors in medium HP categories, which may raise legal concerns under competition lawsBusiness Recorder.
• Although no fees are charged officially, misinformation claims about fees caused public anxiety—fact-checks confirmed no charges applyGeo.tv.
• Ensuring faster delivery after the ballot and proper maintenance remains key for impact.

Final thoughts: why this scheme matters

The Punjab Green Tractor Scheme isn’t just subsidy it’s strategic. It supports agricultural modernization, youth employment, and resource-efficient farming. It acknowledges that small farmers are critical to food security and development.

If you own land between 1–50 acres and want to upgrade your farm this scheme may be your fastest route to affordable, modern machinery. The key is to apply on time, fulfill requirements accurately, and be ready for balloting.

With transparency, scale, and focus on local industry, the Green Tractor Scheme is a powerful move toward an empowered agricultural Punjab—where farmers aren’t just cultivators, they’re modern entrepreneurs too.