Islamabad, June 25, 2025 — Prime Minister Shehbaz Sharif has directed authorities to reduce taxation on agricultural machinery and tools, in a significant move aimed at energizing Pakistan’s agriculture sector.
Chairing a high-level meeting on Wednesday, Shehbaz emphasized the need for practical reforms that empower farmers, lower production costs, and strengthen the national economy.
Calling agriculture the backbone of Pakistan’s economy, Shehbaz reiterated that modernizing the sector through the adoption of advanced machinery is vital to increasing per-acre yields and achieving food security. He stressed that tax reduction on agricultural machinery would make modern tools more accessible to farmers, particularly small landholders struggling with rising input costs.
The Prime Minister directed concerned departments to expedite measures for increasing storage capacity for crops and produce, ensuring better post-harvest management. He lauded the cooperation of provincial governments in financing new agricultural initiatives, noting that such collaboration is key to ensuring comprehensive sectoral growth.
Shehbaz expressed hope that agriculture students and researchers currently studying in China under scholarship programs would return with advanced knowledge and help establish technology-driven farming ventures. These future agri-entrepreneurs, he said, will play a crucial role in transforming the sector through innovation and the use of smart machinery.
He also announced that no new taxes will be levied on fertilizers or agricultural pesticides in the upcoming fiscal year. This policy decision reflects the government’s resolve to support farmers by keeping agricultural inputs affordable.
During the meeting, Shehbaz was presented with the National Agriculture Innovation and Growth Action Plan. The plan includes a roadmap for increasing farmer incomes, expanding access to affordable credit, and encouraging value-added exports. Key recommendations focused on enhancing infrastructure, enabling mechanized farming through subsidies on agricultural machinery, and digitizing loan disbursement systems.
Under the National Technology Fund’s “Ignite” project, 129 agricultural start-ups have been launched so far, with a strong focus on digital machinery innovation and sustainable farming solutions.
The meeting was attended by Federal Minister for National Food Security Rana Tanveer Hussain, Minister for Climate Change Dr. Musadik Malik, PM’s Chief Coordinator Musharraf Zaidi, and other stakeholders from both the public and private sectors.
Shehbaz concluded by reaffirming the government’s long-term commitment to revitalizing agriculture through smart investment, innovation, and widespread use of modern machinery.