ISLAMABAD: Manu­facturers have urged the government to formulate a National Tractor Policy to tackle the challenges faced by the sector, primarily a significant decline in sales that has halved in the current fiscal year.

During a meeting with the Special Assistant to the Prime Minister (SAPM) on Industries and Production Haroon Akhtar Khan on Wednesday, tractor manufacturers raised serious concerns about the high rate of general sales tax (GST), excessive regulatory duties, high markup rates, and a lack policy framework that were key challenges.

The local industry proposed that a dedicated tractor policy was essential for the agri sector and needed govt inter­vention.

They said the industry faced frequent GST regime changes, erratic tractor loaning and subsidy schemes and removal of commodity support prices due to non-existent tractor policy in Pakistan.

Haroon Akhtar Khan described the National Tractor Policy as a landmark initiative aligned with the prime minister’s vision of promoting and protecting local industry.

Meanwhile, the govt has sought proposals from manufacturers to reduce tractor prices and make them more accessible.

Published in Dawn, April 24th, 2025

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