After facing a strong opposition of power and textile sectors, the ministerial level sub-committee constituted by Economic Co-ordination Committee (ECC) of the cabinet on Tuesday turned down the proposal to extend Fertiliser Policy 2001 to provide subsidised gas for BMR investment(s) in fertiliser sector, Business Recorder has learnt.
Under Fertiliser Policy 2001, fertiliser companies were eligible to get subsidised gas for units aimed at expanding its operations to enhance the fertiliser production if they had applied till June 30, 2007. Pak Arab Fertiliser Limited (PFL) has sought 16 MMCFD additional gas at subsidised rates under Fertiliser Policy 2001.ECC has recently approved in principle the additional gas allocation but declined to allow provision of subsidised gas with the directives to review the Fertiliser Policy 2009.
According to a statement issued here, Syed Naveed Qamar, the Federal Petroleum Minister chaired a meeting of the sub-committee constituted by ECC with the mandate to revisit the subsidy on feed gas price for BMR investment(s) under Fertiliser Policy 2001.After threadbare discussion on current cross subsidy policy, fertiliser production/availability and concerns of power, textile and other sectors, it was agreed that to ensure food security and affordability in the country, fertiliser sector should continue to get gas as per relevant policies.
It was also decided to finalise recommendations for consideration of the ECC of the Cabinet in its ensuing meeting. The meeting was also attended by Ministers for Food & Agriculture, Nazar Muhammad Gondal, and senior officers from the concerned ministries including Secretary Petroleum Kamran Lashari.