The Economic Co-ordination Committee (ECC) of the Cabinet is scheduled to meet on Thursday (today) under the chairmanship of Minister for Finance Dr Hafeez Sheikh to finalise fertiliser import plan and restoration of gas supply to fertiliser plants, sources close to Secretary Industries told Business Recorder.
The Ministry of Industries and Production (MoI&P) is of the view that Prime Minister Secretariat and the Petroleum Ministry apparently are not interested in dealing with the fertiliser crisis across the country. "We had sent a summary to the Prime Minister for sending a delegation to Saudi Arabia to discuss import of fertiliser under SABIC facility but the Prime Minister secretariat has not responded to the proposal positively.
Likewise, the Petroleum Ministry did not reply to a summary of the Industries Ministry regarding curtailment of gas disconnection period from 45 days to 30 days to fertiliser plant," the sources added. The MoI&P fears a serious urea fertiliser crisis across the country after the government's fertiliser import plan fails to materialise.
An inter-ministerial meeting held on December 3, 2011, co-chaired by Minister for Industries and Production Hazar Khan Bijarani and Minister for Food and Agriculture (Minfa), held the Ministry of Water and Power responsible for the crisis as it allegedly failed to submit a summary regarding provision of Mari gas to the fertiliser plant.
Sources said the Ministers of Minfa and Industries conveyed their concerns to the officials of the Ministry of Water and Power present in the meeting. The Minister for Industries directed the Secretary Industries to finalise the summary and send it to the Prime Minister immediately.
According to sources, the government's plan to import 0.225 million tons urea through SABIC/Saudi Fund for development on deferred payment has been scrapped as SABIC has refused to extend the facility to Pakistan. Besides, local fertiliser manufacturers have refused to import fertiliser. "TCP Chairman Anjum Bashir intimated to the Ministers that Saudi Arabia was unwilling to extend this facility for supply of urea," sources added.
Fertiliser sector is of the view that the price increase was due to the 45 days' winter gas load shedding, instead of 30 days, gas curtailment of 20 percent on Sui-based plants and 12 percent gas curtailment on Mari-based plants since May 2010.
It was also decided in the meeting that import of 0.225 million tons of urea would be fast-tracked to ensure availability of urea in the market, at reasonable price. The price of urea in the international market was $376 fob, that translated into around Rs 2012 per 50-kg bag. The offtake of urea during last two months has been more than normal which has given a signal to hoarders. The provincial governments were directed to take appropriate legal action against hoarders.
The Ministries of Finance and Health will give a presentation on poverty alleviation fund and drug policy. The committee will also discuss availability and prices of essential items in the country, besides progress in implementation status of decisions taken in the past. Governor State Bank of Pakistan, Shahid Hafeez Kardar is expected to give detailed briefing about the overall economic situation of the country.
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