Author: Rana Afzaal
Introduction
The Punjab Government has officially continued and expanded the Green Tractor Subsidy Scheme into 2026 after its successful implementation in 2025. This flagship agricultural support program aims to empower small and medium-scale farmers by providing subsidized access to modern tractors at a time when inflation, rising fuel prices, and increasing machinery costs have placed heavy pressure on the farming community. By promoting farm mechanization and reducing financial barriers, the Punjab Government seeks to boost agricultural productivity, improve crop yields, and strengthen the rural economy across the province.
پنجاب حکومت نے گرین ٹریکٹر سبسڈی اسکیم کو 2026 میں بھی جاری اور مزید وسعت دے دی ہے۔ بڑھتی ہوئی مہنگائی، ایندھن کی قیمتوں اور زرعی مشینری کے اخراجات کے باعث کسانوں کو درپیش مشکلات کے پیش نظر یہ اسکیم کسانوں کو جدید ٹریکٹرز سستے داموں فراہم کرنے کے لیے شروع کی گئی ہے۔ اس اقدام کا مقصد زرعی پیداوار میں اضافہ اور دیہی معیشت کو مضبوط بنانا ہے۔
Achievements of Phase I
Phase I of the Green Tractor Scheme proved to be a major success across Punjab. Approximately 9,500 tractors were distributed to eligible farmers at highly subsidized rates. Each tractor came with a government subsidy of PKR 1 million, making tractor ownership possible for farmers who previously relied on rented machinery. The overwhelming response and positive impact on agricultural operations encouraged the Punjab Government to expand the program further.
Phase II Expansion and Continuation in 2026
Under Phase II, which continues into 2026, the Punjab Government has announced the distribution of 20,000 tractors under subsidy. This phase focuses on meeting the needs of both small and large landholding farmers. A total of 10,000 large tractors ranging from 75 to 125 horsepower are being provided with a subsidy of PKR 1 million each. In addition, 10,000 small tractors with 50 to 65 horsepower are being offered with a subsidy of PKR 500,000 per unit. Due to strong demand, Phase II allocations and deliveries are continuing in early 2026.
Eligibility Criteria
To ensure transparency and that subsidies reach genuine farmers, eligibility is strictly linked with verified land ownership. Applicants seeking large tractors must own at least 7 acres of agricultural land, while those applying for small tractors must own a minimum of 5 acres. Land ownership is verified digitally through the Punjab Land Record Authority (PLRA). A valid CNIC is mandatory, and only registered landowners in Punjab are eligible to apply.
Online Application Process
The application process is fully digital, transparent, and free of cost. Farmers can apply by visiting the official portal gts.punjab.gov.pk. After entering their CNIC and land details, the system automatically verifies land ownership through PLRA records. If the applicant meets the eligibility criteria, the application is accepted instantly. Within 24 hours, applicants receive an SMS confirmation informing them of their qualification for the computerized balloting process. There is no manual paperwork, no agent involvement, and no application fee at any stage.
Subsidy Disbursement Mechanism
Under the scheme, the government subsidy is directly paid to the tractor manufacturing company selected by the farmer. For example, if a tractor costs PKR 6 million, the government pays PKR 1 million directly to the company, while the farmer pays the remaining PKR 5 million. This mechanism ensures transparency and prevents misuse of funds. Farmers can choose from approved tractor brands and select horsepower according to their farming requirements.
Tractor Prices in 2026 Market
In the current market, small tractors generally range between PKR 3 million and PKR 4 million, while large tractors cost approximately PKR 4 million to PKR 7 million depending on brand and specifications. With the government subsidy, the overall financial burden on farmers is significantly reduced, making tractor ownership more achievable, especially for small and medium-scale farmers.
Importance of the Scheme for Farmers
The Green Tractor Subsidy Scheme plays a critical role in modernizing agriculture in Punjab. It enables farmers to adopt mechanized farming practices, reduces dependence on rented equipment, and improves efficiency during peak agricultural seasons. Larger tractors help in operating advanced machinery, while smaller tractors support daily farming activities. The fully digital process also ensures fairness, transparency, and equal opportunity for farmers across all districts of Punjab.
Current Status and 2026 Outlook
As of January 2026, Phase II applications are ongoing, and tractor deliveries are being carried out in batches following computerized balloting. The Punjab Government has indicated that further extensions or a possible Phase III may be announced later in 2026 based on demand, budget availability, and agricultural performance. Farmers are advised to regularly check the official portal and government announcements for the latest updates.
Application Deadline
There is no fixed final deadline announced yet; however, applications are processed in phases. Farmers are strongly encouraged to apply as early as possible to increase their chances in the balloting process and avoid missing upcoming allocation rounds.
Final Thoughts
The Punjab Government Tractor Subsidy Scheme 2026 is a powerful initiative aimed at supporting farmers during challenging economic times. By offering subsidies of up to PKR 1 million on tractors and ensuring a transparent, fully online application process, the government is taking concrete steps to strengthen Punjab’s agricultural sector. This scheme not only eases financial pressure on farmers but also promotes long-term agricultural growth and sustainability.
If you are a land-owning farmer in Punjab, this is a valuable opportunity to modernize your farming operations. Apply through the official portal and benefit from government support designed to improve productivity and rural prosperity.
✅ Subsidy: PKR 1 million (large tractors), PKR 500,000 (small tractors)
✅ Total Units: 20,000 tractors
✅ Apply Online: gts.punjab.gov.pk
✅ Process: 100% digital, transparent, no fees