Prime Minister Shehbaz Sharif on Wednesday directed a phased reduction in taxes on agricultural machinery and equipment to promote mechanisation and productivity, as part of a broader reform push to revitalise Pakistan’s struggling farm sector.
Chairing a high-level meeting on agriculture, the prime minister described the sector as the “backbone of the national economy”, and stressed that reforms must focus on raising per-acre yields, lowering input costs, and fostering economic growth. The meeting came amid criticism from opposition parties over declining sectoral output and high input prices.
Sharif also reiterated his government’s decision—backed by the IMF—not to impose new taxes on fertilisers and pesticides in the upcoming budget, promising price stability for essential inputs used by farmers.
The meeting reviewed progress under the National Agriculture Innovation and Growth Action Plan, which includes efforts to expand cold storage capacity, improve access to subsidised credit, and increase the export of value-added produce. Officials noted that 129 agri-tech start-ups have been launched under the National Technology Fund’s “Ignite” initiative, reflecting growing digital engagement in the sector.
The prime minister also welcomed provincial commitments to co-fund agricultural development projects, and called for faster implementation of storage and infrastructure expansion to reduce post-harvest losses.
Sharif said the government expects Pakistani students and agri-scientists currently in China to return and play a role as innovators and entrepreneurs in the domestic agriculture sector.
Reform priorities outlined during the meeting included, Gradual tax relief on farm equipment and machinery, modernisation of agricultural logistics and storage, improved access to affordable financing for farmers, and the promotion of agri-based exports and value-added processing
The meeting was attended by Food Security Minister Rana Tanveer Hussain, Climate Change Minister Musadik Malik, Chief Coordinator Musharraf Zaidi, Agriculture Sector Coordinator Ahmad Umair, and senior officials from public and private sectors.
The PM’s statements mark a continued policy pivot toward sustainable rural development and sectoral innovation, even as stakeholders await the fine print of fiscal measures in the upcoming budget.
