A delegation of PAAPAM lead by Senior vice Chairman Mr. Mumshad Ali called upon the Federal Minster for National Food Security & Research, Mr. Sikandar Hayat Bosan at his secretariat in Islamabad on 4th September and appraised the minister about the critical situation the tractor part makers are facing due to the delay in the launch of the provincial tractor subsidy schemes.

Paapam had hailed Tractor subsidy Schemes announcement by Punjab/Sindh Governments in their respective finance bills some two months back, as this was expected to give a boost to tractor production which has seen a declining trend in the last few years due to GST rate changes, floods, and commodity price crashes particularly rice, potato, and cotton.

Soon after the announcement of the provincial tractor subsidy schemes, local tractor assemblers and their associated suppliers made preparations for gearing up of their productions to meet the impending demand.

As the buying season approaches there is still no news from both the provincial governments i.e. Sindh and Punjab on the time line for launching of the schemes nor on the amount of subsidy per tractor and the number of tractor units that will be subsidized. Tractor yards of the main tractors assemblers of the country are brimming with tractors to meet this demand, while the cash starved farmers await the launch of the scheme so that they can apply for tractors through these schemes. The assemblers are now considering stopping production until they clear their stocks which means no orders for 100s of units associated with tractor parts production in the country.

‘Such delays and last minute changes to subsidy per tractor, and number of tractors to be subsidized are common and have resulted in severely affecting the supply chain in the past also”, commented Mr. Saeed Iqbal a senior member of Paapam and involved in the manufacturing of tractor parts.