Punjab Government Plans Soft Loans for Agricultural Mechanization

Farmers and Service Providers to Get Interest-Free Loans Up to Rs50 Million

LAHORE – In a bid to modernize Punjab’s agricultural sector, the Punjab government is considering a plan to offer interest-free loans up to Rs50 million to farmers, service providers, importers, and manufacturers for purchasing modern agricultural machinery.

The initiative, which falls under the Chief Minister’s High-Tech Financing Programme, aims to accelerate the adoption of advanced farming techniques and mechanized agriculture to boost productivity and reduce manual labor dependency.

Punjab Agriculture Minister Ashiq Kirmani led discussions on the proposal, highlighting that consultations with stakeholders are underway to incorporate this scheme into the upcoming provincial budget. He emphasized that increasing agricultural mechanization is critical for improving efficiency and ensuring food security in the province.

Key Features of the Soft Loan Program

✔️ Loans up to Rs50 million for farmers, service providers, importers, and manufacturers

✔️ Interest-free financing to reduce financial burdens

✔️ 25 types of agricultural machinery to be made available

✔️ Collaboration with research institutions to enhance technical training

✔️ Agri-rental services at the tehsil level to improve access to modern equipment

Encouraging Mechanized Farming

Minister Kirmani noted that during his recent visit to China, Pakistani officials observed a keen interest in agricultural mechanization from Chinese companies. He pointed out that Pakistan lags behind in mechanized farming, with only 35% of farming activities mechanized, compared to over 70% in developed nations.

The Punjab government is working closely with agricultural extension and university research institutions to introduce practical training for machine operators and promote the efficient use of advanced technology.

Additionally, under the Green Pakistan Initiative, agri-rental services at the tehsil level are being launched to ensure that small-scale farmers who cannot afford their own machinery can still access advanced tools at a low cost.

Why Agricultural Mechanization Matters

According to Agriculture Secretary Iftikhar Ali Sahoo, achieving optimal crop yields is impossible without widespread use of modern agricultural technology. He emphasized that this financing program will enable farmers to increase productivity, reduce post-harvest losses, and enhance overall agricultural efficiency.

The meeting was also attended by key officials, including:

Agha Nabeel Akhtar, Additional Secretary (Planning), Department of Agriculture

Dr. Kashif Bashir, Director of Agriculture (Planning)

Naveed Asmat Kahloon, Director of Agricultural Engineering

Pros and Cons of the Soft Loan Scheme

Pros:

✅ Increases farm productivity through modern technology

✅ Reduces labor dependency, lowering overall farming costs

✅ Improves food security with higher crop yields

✅ Supports small farmers through affordable agri-rental services

✅ Encourages investment in local manufacturing of farm machinery

Cons:

❌ Implementation challenges in ensuring fair distribution of loans

❌ Financial burden on the government if loan recovery mechanisms are weak

❌ Limited accessibility for small-scale farmers without proper awareness campaigns

❌ Infrastructure gaps may delay machinery availability in remote areas