Purpose & Scope:

Govt. of Pakistan has introduced markup subsidy and risk sharing scheme for farm mechanization (MSRSSFM). The objective of the scheme is to support farmers for acquiring equipment needed for agriculture purposes which includes Tractors, thresher, harvesters, planters, mobile grain dryers and solar tube wells.

Farm mechanization is critical to support productivity and efficient management of allied activities. Since majority of the farmers are small with low purchasing power cannot afford to buy these equipment from their own sources and resultantly cannot bring in efficiency in agri operations. Lack of availability and usage of technology is resulting in low productivity and affecting adversely the objective of food security in the country.

The scheme is excellent in terms of subsidy support for the farmers and repayment of the installment is linked with crop cycle of six month. Moreover, the tenor allowed is seven years which enables the farmer to pay installment after harvest of each crop. The long tenor of seven years along with subsidy (end user rate of 7%) is supportive for farmer to purchase much needed high cost farm machinery like tractor/others. The scheme is expected to achieve the objective of Farm Mechanization in Pakistan.

Salient Features:

• All farmers, Processors and corporates engaged in agriculture crop production are eligible.
• New/used farm machinery (up to 3-years old) is allowed which includes tractors, Thresher, Harvester, Planters,Mobile Grain Dryers, and Solar Tube-wells
• Maximum finance up to Rs. 30 million can be considered
• Tenor of Finance is up to 7 years based on useful life of machinery.
• End use rate of markup is 7% per annum
• The payment against purchase of farm machinery/equipment will be directly made in the name of supplier/vendor/owner.