Govt plans diesel subsidy for small farmers, Rs1,500 per acre proposed

ISLAMABAD (Dunya News) - The Government of Pakistan, in coordination with provincial authorities, is preparing a diesel subsidy plan aimed at supporting small farmers and reducing agricultural costs.

According to sources, a subsidised package is being developed for farmers owning up to five acres of land. Under the proposal, a subsidy of up to Rs1,500 per acre is being considered for the upcoming crop season.

The plan suggests that funds will be allocated from provincial budgets and transferred directly into farmers’ digital wallet accounts to ensure transparency and timely disbursement.

In addition, there is a proposal to extend similar subsidies for motorcycles and rickshaws, with provincial governments handling direct payments, while the formal announcement will be made by the federal government.

The move comes amid rising regional tensions and the possibility of increased petroleum prices, with the aim of providing relief to the public, especially the farming community.

Sources indicate that provinces are expected to collectively allocate around Rs150 billion for the subsidy, while the federal government will introduce a coordinated mechanism for its implementation. Data of small farmers is already available in Punjab and Sindh, and around 1.5 million farmers in Khyber Pakhtunkhwa are also expected to benefit from the initiative.