A policy dialogue on strengthening agriculture innovation systems for agricultural machinery for small holders in Pakistan, under the European Union-funded TAP-AIS project, identified that the absence of a national policy on agriculture mechanization is a prime reason for slow progress in mechanization and thus low farm productivity. Thus, development and adaptation of a national policy on agriculture mechanization by the federal government would be a primary and main contributor for evolving a well-functioning ecosystem for agriculture mechanization. A unified approach by all stakeholders, and increased collaboration will expedite the rate of farm mechanization. This policy brief addresses the following major issues and their possible solutions: • Absence of standards/testing/ certification/evaluation Regime. • Acute shortage of human resource development at all levels.• Enabling environment for local manufacturers. • Limited role of service providers • Repair and maintenance of agriculture machinery• Access of credit facilities to small-holder farmers• Adaptation of modern agriculture tools of satellite Imagery, solarization, AI and drones • Lack of coordination among stakeholders