PM Orders Tax Cuts for Farm Machinery

Islamabad, June 26, 2025 — Prime Minister Shehbaz Sharif on Wednesday ordered a phased reduction in taxes on agricultural machinery and equipment to boost mechanisation and productivity, spearheading a bold reform push to revive Pakistan’s struggling farm sector during a high-level meeting on agriculture. Labeling the sector the “backbone of the national economy”, Sharif demanded higher per-acre yields, lower input costs, and economic growth, amid opposition criticism over declining output and high prices.

Backed by the IMF, Sharif reaffirmed no new taxes on fertilisers and pesticides in the upcoming budget, ensuring price stability for farmers. The National Agriculture Innovation and Growth Action Plan progress—expanded cold storage, subsidised credit, and value-added exports—was reviewed, with 129 agri-tech start-ups launched under the National Technology Fund’s Ignite initiative, signaling digital growth. Sharif welcomed provincial co-funding for development projects and urged faster infrastructure to cut post-harvest losses, expecting Chinese-trained students and agri-scientists to drive innovation.

Reform priorities include tax relief on farm equipment, modernised logistics, affordable financing, and agri-export promotion. Attendees included Food Security Minister Rana Tanveer Hussain, Climate Change Minister Musadik Malik, Chief Coordinator Musharraf Zaidi, Agriculture Sector Coordinator Ahmad Umair, and senior officials.

Web context highlights Pakistan’s agrarian decline (e.g., 6% GDP drop, web ID: 0), while posts found on X show hope—some back reforms, others doubt execution. Critically, the narrative of “rural revival” may mask funding gaps—web data points to debt reliance, and X sentiment suggests distrust in sustained impact, hinting at policy risks.