Check Which Punjab Farm Machinery Subsidy Fits You in 2026-27: 60%, 30% or an Interest-Free Loan
Punjab runs five farm machinery schemes in 2026-27, from a 60% subsidy to a 30% grant and interest-free loans. Check which one fits your machine and acres.
Short answer: Punjab's Agriculture Department runs five machinery schemes in 2026-27, and each pays a different share. The farm mechanization project pays 60% on 38 listed implements, the P-CLAMP project pays a 30% grant of up to Rs 5 million a machine, and the hi-tech financing scheme gives interest-free loans. Match your machine to the right one before you ask anyone for a form.
A farmer near Okara wants a rice transplanter and a baler. His cousin says "apply for the 60% scheme". His dealer says "there is a 30% grant now". Both are real, but they are different projects for different machines, and a farmer who joins the wrong queue loses a season.
We read the Punjab Agriculture Department's own pages on its new, ongoing and Chief Minister's schemes on agripunjab.gov.pk on 12 October 2026. Below is each scheme with its figures as printed, and what the pages do not say.
Five schemes cover farm machinery in Punjab in 2026-27
The department lists the Farm Mechanization Project, P-CLAMP, the Hi-Tech Farm Mechanization Financing Program, the Green Tractor programme and, for pulses and cotton, two area projects. Subsidy shares run from 30% to 60%, and two of the schemes are loans, not grants.
| Scheme | What it pays | Machines named |
|---|---|---|
| Agricultural Farm Mechanization Project | 60% subsidy, Rs 0.5 million (group I) or up to Rs 1.0 million (group II) | 26 implements for 7,500 farmers, 12 for 1,600 farmers |
| P-CLAMP | 30% grant, up to Rs 5.0 million a machine | Rice combines, transplanters, nursery machines, balers |
| Hi-Tech Farm Mechanization Financing | Interest-free loan to 1,485 farmers or service providers | Wheat combine, multi-crop planter, rice machines, baler, high power tractor |
| Green Tractor Phase IV and V | Rs 0.75 million or Rs 1.0 million a tractor | 50 to 65 hp and 75 to 125 hp tractors |
| Cotton in Bahawalpur | 50% subsidy | Sprayers and chisel plough |
The farm mechanization project pays 60% on 38 implements
The Agricultural Farm Mechanization Project runs from 2025-26 to 2027-28 with Rs 386 million set for 2026-27. Group I gives machinery to 7,500 farmers at a 60% subsidy on 26 implements. Group II gives machinery to 1,600 farmers at 60%, up to Rs 1.0 million, on 12 implements.
The page prints Rs 0.5 million beside group I and "Max. Rs. 1.0 Million" beside group II. We read the first as the cap for group I as well. The page does not list the 38 implements by name, and it does not give the application window.
P-CLAMP is a new 30% grant with bank loans behind it
P-CLAMP, short for Punjab Climate Resilient and Low Carbon Agriculture Mechanization Project, runs from 2025-26 to 2030-31. It pays a 30% matching grant per machine, up to Rs 5.0 million. The farmer or service provider puts in 20% as equity, and banks provide 50% as a loan.
The department lists the machines and the number of units for each:
- Head or half-feed rice combine harvesters: 3,050 units
- Full-feed rice and wheat combine harvesters: 1,052 units
- Riding-type rice transplanters: 800 units
- Walk-behind rice transplanters: 4,000 units
- Rice nursery raising machines: 1,506 units
- Balers for crop residue: 450 units
A machine at Rs 10 million would, on these shares, mean Rs 3 million from the grant, Rs 2 million from you and Rs 5 million from a bank. That sum is our arithmetic, not the department's example. The cap of Rs 5.0 million is the limit on the grant for one machine.
The hi-tech scheme gives loans, and the tractor schemes are separate
The Chief Minister's Hi-Tech Farm Mechanization Financing Program offers interest-free loans to 1,485 farmers or service providers to import machinery. The list includes a wheat combine harvester, multi-crop planter, rice transplanter with nursery machine, rice combine, baler, maize cob harvester, silage harvester, maize cob dryer, central pivot irrigation system and a tractor above 85 hp.
Tractors have their own route. The ballot for the 50 to 65 hp tractors and the offer-letter date are in the note on Green Tractor Phase IV offer letters, and the steps for the larger machines are in applying online for the Green Tractor scheme. For a super seeder, which is a different project, see the rental rate in the Rs 5,000 an acre super seeder subsidy.
How to match your machine to the right scheme
Start from the machine, not the scheme name. Write down the machine you want, your acres and whether you farm for yourself or hire out your machine. Then check which row of the table above names it.
- Write down the machine and its approximate price.
- Find it in the table: is it a rice, wheat, baler, tractor or cotton machine?
- Note whether the scheme pays a grant, a share of cost or an interest-free loan.
- Check your land size against the tractor limits of 5 acres and 7 acres.
- Ask your district Agriculture Extension office whether the window is open, and take your CNIC and land record.
No office should charge you for a scheme form. If someone asks for money to put your name on a list, say no and ask for the department's receipt.
What the department pages do not say
The pages are planning documents, so they list targets and shares, not forms. They do not give an application link for the farm mechanization project or P-CLAMP, and they do not give opening dates. The department's job page shows it was still recruiting staff for P-CLAMP in May and June 2026, which suggests the scheme is in set-up.
Common questions
Which Punjab scheme gives 60% on farm machinery?
The Agricultural Farm Mechanization Project, at 60% on 26 implements for group I and 12 for group II. The Clean Air programme also gives 60% on 5,000 super seeders.
How much does P-CLAMP pay?
A 30% matching grant per machine, up to Rs 5.0 million. You pay 20% equity and a bank lends 50%.
Can I get a combine harvester under any scheme?
Yes. P-CLAMP lists rice and wheat combines, and the hi-tech financing scheme lists a wheat combine and a rice combine on interest-free loans.
Is the hi-tech financing a subsidy?
No. It is an interest-free loan to 1,485 farmers or service providers, so you repay the machine's cost.
How do I apply?
The pages do not give a link. Ask your district Agriculture Extension office, and watch agripunjab.gov.pk for notices.
Can a service provider apply, not only a farmer?
P-CLAMP and the hi-tech scheme both name service providers beside farmers. The tractor schemes are for farmers with land of 5 acres or more.
How we verified this
What we checked, where we read it, and what we could not confirm.
Last checked on 12 October 2026. We read the Punjab Agriculture Department's pages of new schemes, ongoing schemes and Chief Minister's initiatives. We did not find application links or opening dates for the farm mechanization project, P-CLAMP or the hi-tech financing scheme. Shares and caps are as printed on those pages.
About the author
Tax, Bills and Technology Writer
Ali Akhtar is a young and curious voice here at Pakistan Era. He is currently pursuing his A-Levels and has a growing interest in Pakistan’s changing industrial landscape and educational trends. Ali likes to write in a way that helps him explain and explore the world around him. His writing reflects the perspective of the new generation navigating the evolving trends of Pakistan where technology, youth innovation, and shifting opportunities are reshaping the country’s future.
