ISLAMABAD: Adviser to the Prime Minister on Finance and Revenue, Dr Abdul Hafeez Shaikh decided to form two sub-groups to look into the issue of the GIDC to propose workable options for the solution of the issue after fertiliser industry approached him with request to recover GIDC from the industry in 10 years instead of 24 months.
Sources stated during a meeting with the adviser to the prime minister on finance, Fauji Fertilizer contended that the fertiliser sector had been facing liquidity problem and, therefore, the GIDC collected amount might be recovered from it in 10 years, instead of 14 equal installments as directed by the Supreme Court of Pakistan.
The Special Assistant to the Prime Minister on Petroleum, sources added, stated that balance sheets of all the fertiliser companies did not support the claim of the industry as companies had been making phenomenal profit.
He further stated that one company's profit was Rs91 billion but it was not willing to pay Rs61 billion collected from consumers on account of GIDC to the government.
Sources said that finance and petroleum ministries came to the meeting with full preparedness, and even placed before the advisory council of the Fertilizer Manufacturers of Pakistan (FPAMC) their profit on equity.
Sources added that the profit on equity of fertilizer companies was between 48 to 60 percent.
An official said that more than Rs300 billion had been collected by the fertiliser sector on account of the GIDC since 2011 and had not been deposited to the government and they were now seeking 10 years to pay.
Sources said that the All Pakistan Textile Manufacturers Association (APTMA) also sought time for payment of the GIDC.
The adviser on finance held two separate meetings with the group of representatives from the fertiliser industry and the APTMA to discuss the issue of Gas Infrastructure Development Cess, (GIDC).
Lt Gen (retired) Tariq Khan, chairman FMPAC and Chairman APTMA Dr Amanullah Kassim Machiyara requested the adviser finance to extend the time limit for the payment of GIDC, so that both industries had a better liquidity position.
The adviser discussed the issue in detail with the participants of the meeting, and provided due opportunity to share their views supported by relevant facts.
Shaikh, however, made it clear that the decision of the Supreme Court of Pakistan had to be implemented.
The SAPM on Petroleum and the Minister for Industries also briefed the meeting.
After detailed deliberations, the chair decided that the issue would be resolved in the light of the decision of the court but the government would also support the industry in the post-corona environment.
The adviser directed that two separate sub-groups would be formed to look into the issue of GIDC to propose 2-3 workable options for amicable solution.
The first group shall have representatives from the fertiliser industry, the Finance Ministry, the FBR, and Adviser Petroleum to be headed by the Minister for Industries.
The second group shall have representatives from the APTMA, the Finance Ministry, the FBR, the Adviser Petroleum, the Adviser to PM on Commerce, and the Minister for Industries. The Minister for Industries shall chair both groups and shall present recommendations in the meeting to be held next week. The meeting was attended by the SAPM on Petroleum, Nadeem Baber, and the Minister for Industries, Hammad Azhar. Officials of the Ministry of Finance, the Petroleum Division and the FBR also assisted the meeting.
Copyright Business Recorder, 2020
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