LAHORE: The Competition Commission of Pakistan (CCP) is considering taking suo motu notice of the exclusion of certain imported tractor models from the Punjab government’s “Green Tractor Programme,” a move that could violate competition laws by restricting market access and limiting consumer choice, BR reported, citing sources.
The Punjab government has approved a PC-1 for the distribution of 9,500 subsidised tractors (ranging from 75 to 125 horsepower) to farmers in fiscal year 2025-26 as part of the “Chief Minister’s Programme for Provision of High-Powered Tractors.” A pre-qualification meeting for original equipment manufacturers (OEMs) and importers was recently held.
However, concerns have been raised that the scheme includes only locally manufactured tractors in the 50–65 HP range, excluding imported models of similar specifications. This exclusion could potentially be discriminatory and may violate Sections 3 and 4 of the Competition Act, 2010, which prevent abuse of dominant market position and restrictive agreements.
The “Green Tractor Scheme” offers a subsidy of Rs0.1 million per tractor, with a balloting system for farmers to select from a range of 50 to 85 horsepower tractors, all of which are locally manufactured.
Stakeholders argue that the exclusion of imported tractors—particularly those in the 50–65 HP range—limits consumer choice, as these models often feature advanced fuel-saving technologies and other competitive advantages.
The CCP, under its mandate, is authorised to investigate actions that hinder competition in the market or result in the abuse of domestic market dominance.
