Razak directs not to increase prices of fertilizer

ISLAMABAD: The adviser to Prime Minister on Commerce, textile, Industries and Investment, Abdul Razak Dawood  Wednesday directed that the prices of fertilizer would not be increased until the budget for fiscal year 2019-20 is passed and the impact on fertilizer industry is worked out in a comprehensive manner.

In meeting with Fertilizer Review Committee, the adviser to PM on Commerce assured that the industry shall not increase the price of fertilizer until further discussions,said a press release issued by Ministry of Commerce here.

The adviser  chaired the meeting of Fertilizer Review Committee. Lt. Gen (retd.) Tariq Khan, CEO Fauji Fertilizer Company Limited, Fawad A. Mukhtar, CEO Fatima Fertilizer Company Limited, Brig. (retd.) Sher Shah, Executive Director Fertilizer Manufacturers of Pakistan Advisory Council (FMPAC), Muhammad Faisal Muzammil, CEO Agritech Limited also attended the meeting along with other representatives of fertilizer industry.

The adviser was accompanied by Secretary, Ministry of Industries and Production Aamir Ashraf Khawaja , Chief National Fertilizer Development Centre (NFDC) and Director (Gas), Petroleum and Natural Resources Division.

Razak asserted the fact that relief to farmers and a working relationship with the industry was the government’s top priority.

The adviser inquired regarding the recent reports that fertilizer prices had been increased prior to this meeting, to which the participants responded that the decision had been held off due to the commitment to the Adviser and the price increase had been halted.

The Adviser appreciated this step by the industry and encouraged the prospect of a working relationship between the Ministry and the industry as only this can result in a stable business environment and relief for the general public especially the farmers.

The Adviser assured that efforts will be made to ensure gas supply to Fatima fertilizers Limited and Agritech Limited in order to keep them operational and avoid any possible shortages in the upcoming season.

Discussion took place regarding Gas Infrastructure Development Cess (GIDC).

It was brought to the notice of the adviser that a revised Gas Infrastructure Development Cess Act had been ratified by the Federal Cabinet and may soon be passed by the Parliament.

This will help to work out the differences with the fertilizer industry and will also prove fruitful towards revenue generation in the country.

As the said matters fall under the purview of Petroleum and Natural resources Divisions, the concerned representative was requested to ensure that all stake holders are on the same page regarding the matter.