According to sources, the subsidy will target farmers who own up to five acres of land. Under the proposal, they may receive up to Rs1,500 per acre for the upcoming crop season, helping them manage expenses such as ploughing and irrigation.

Officials say the funds will come from provincial budgets. The money will be transferred directly into farmers’ digital wallet accounts to ensure transparency and quick delivery without delays or middlemen.

The plan also includes a proposal to extend similar subsidies to motorcycle and rickshaw users. Provincial governments are expected to handle payments, while the federal government will make the final announcement.

This step is being considered due to rising regional tensions and the risk of higher petroleum prices. Authorities aim to reduce the financial burden on farmers, who are already struggling with increasing input costs.

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Sources suggest that provinces may collectively allocate around Rs150 billion for the subsidy program. The federal government will introduce a system to coordinate and manage its implementation effectively.

Data on small farmers is already available in Punjab and Sindh, which will help ensure a quick rollout. In Khyber Pakhtunkhwa, around 1.5 million farmers are also expected to benefit from this initiative.

The proposal has created hope among farmers, who have long demanded support to cope with rising costs. However, many are waiting to see how quickly and fairly the subsidy will be delivered.