ISLAMABAD – June 25, 2025:
Prime Minister Shehbaz Sharif has unveiled a comprehensive plan aimed at revitalizing Pakistan’s agriculture sector by cutting taxes on essential farm inputs and significantly increasing investment in agricultural technology.
The announcement came during a high-level policy meeting in Islamabad as part of the government’s preparations for the FY2025–26 federal budget. The move signals a strategic shift toward boosting rural incomes, food security, and overall productivity in a sector that contributes nearly 23% to the national GDP and employs over one-third of the country’s labor force.
Key Announcements from PM Shehbaz Sharif
During the session, PM Sharif called agriculture “the backbone of Pakistan’s economy” and emphasized the urgent need for sustainable, tech-driven reforms. He directed key ministries to:
→ Reduce import duties on farm machinery
→ Avoid new taxes on fertilizers and pesticides
→ Fast-track development schemes for storage, irrigation, and modern harvesting systems
→ Promote local agri-tech solutions and rural innovation hubs
National Agri-Tech Action Plan in Focus
Officials briefed the Prime Minister on the National Agriculture Innovation and Growth Action Plan, a comprehensive blueprint designed to:
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Improve crop yields through modern farming tools and precision agriculture
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Expand access to low-cost credit for small and medium-sized farmers
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Enhance value-added agri exports to increase rural profitability
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Digitize marketplaces and reduce inefficiencies in supply chains
The plan also includes infrastructure development to improve cold storage, warehousing, and rural connectivity — major bottlenecks affecting the post-harvest supply chain in Pakistan.
Ignite’s Role in Driving Agri Innovation
The Prime Minister praised the work of the Ignite National Technology Fund, which has successfully launched 129 agri-tech startups across Pakistan. These ventures are working on smart irrigation systems, AI-powered yield forecasts, drone-based spraying, and mobile apps that connect farmers directly to buyers.
PM Sharif highlighted that these startups are not only helping farmers lower their costs but also creating jobs in rural communities and attracting tech talent into the agriculture domain.
Support for Overseas Agricultural Scholars
In a bid to harness global expertise, the Prime Minister emphasized the importance of supporting Pakistani students studying agriculture in countries like China. These professionals, he said, will play a crucial role in introducing modern research and best practices into the local context.
Looking Ahead: Budget Priorities for FY26
As budget talks near completion, the government’s agriculture strategy is being positioned as a core pillar of its economic agenda for FY2025–26. With inflation, water shortages, and farmer debt mounting, the administration hopes that a mix of targeted tax relief, smart subsidies, and digital innovation can unlock the true potential of Pakistan’s agrarian economy.