Fertilizer industry has urged the Punjab and Sindh governments to suspend Tax Amendment Act to avert disruption of supply across the country. In a letter to Chief Secretaries of both provinces, Brig Sher Shah Malik (Retd), Executive Director Fertilizer Manufacturers of Pakistan Advisory Council (FMPAC) has stated that fertilizer industry has so far only one reported case of Coronavirus- an Engro employee. The company has taken various preventive measures in this regard to avert any further incident.
However, collective activities have been called off. Following impact of the preventive measures is foreseen: (i) production facilities are not likely to be impacted with the measures in place. Local manufacturing of urea and CAN will not be impacted due to dependence on domestic gas supply.
However, Production of DAP/NP/NPKs could be impacted due to dependence on imported raw materials in case of severity of the epidemic Coronavirus;(ii) import of raw materials and other fertilizers may be impacted, in case of any extraordinary measures at global level and ;(iii) any restrictions placed on transport and non availability of labour will definitely impact the supply chain, subsequently.
According to the letter, Sindh government has ordered lock down of markets including fertilizer, thus supply chain which is mainly rural has been disrupted, adding that non availability of fertilizer may lead to food security issues in future.
FMPAC maintains that confusion caused by Tax Amendment Act requiring registration of dealers and CNIC requirements for purchases over Rs 500, 00 was already impacting supply chain negatively.
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