Govt vows to incentivise fertiliser makers, exporters

Web DeskWeb Editor

26th Aug, 2021. 01:12 pm
fet

ISLAMABAD: The government has vowed to encourage and incentivise fertiliser manufacturers, as well as exporters to meet the domestic demand effectively.

Chairing a meeting with the chairman and other members of the Fertilizer Manufacturers of Pakistan Advisory Council (FMPAC), Federal Minister for Finance and Revenue Shaukat Tarin highlighted the need to bring in more investment in the fertiliser sector for enhancing domestic production and higher crop yields.

Welcoming the FMPAC chairman and its members, the minister lauded the contribution of the fertiliser industry in the national development.

The fertiliser sector was of paramount importance in agriculture, as this sector contributes around 22 per cent to Pakistan’s Gross Domestic Product (GDP) and employs almost half of Pakistan’s employed workforce in the agro-based industries directly or indirectly.

The minister also said the Covid-19 pandemic has delivered a supply shock to the global commodity markets and pushed up the prices of agricultural inputs substantially.

The present government, Tarin said, was providing natural gas and re-gasified liquefied natural gas (RLNG) at concessional rates to the fertiliser plants for sustainable production during these testing times.

He directed the Federal Board of Revenue (FBR) chairman to expedite the disbursement of refunds to improve the liquidity position of the fertiliser industry.

He also constituted a committee, comprising Ministry of National Food Security and Research secretary, Finance Division additional secretary (CF) and other relevant stakeholders to hold a consultative session and bring forward recommendations with mutual consensus for a way forward.

Tarin assured full support and facilitation to the fertiliser industry on the occasion.

The FMPAC chairman apprised the minister about the challenges being faced by the industry such as cash flow crunch, mismatch between input and output, general sales tax (GST) on urea production, etc.

The FMPAC chairman and other representatives of the fertiliser industry complimented the finance minister for his pro-farmer approach and assured full cooperation.

Among others, the Finance Division, Ministry of National Food Security and Research secretaries, FBR chairman and other senior officials were also present during the meeting.

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