FMPAC and govt settle fertilizer subsidy issue

Islamabad: A meeting between government officials and Fertilizer Manufacturers of Pakistan Advisory Council (FMPAC) was held at Prime Minister’s Office in Islamabad to resolve long outstanding payment issue of subsidy claims of the fertilizer industry.

The meeting held on the directions of former Prime Minister Nawaz Sharif, was chaired by Fawad Hassan Fawad and attended by Secretaries Finance and Ministry of National Food Security and Research, Chairman Federal Board of Revenue (FBR) and Chairman FMPAC Lt Gen (r) Shafqaat Ahmed, according to a statement issued here on Saturday.

The Chairman FMPAC gave a run down on the subsidy scheme and the procedural complexities, which caused delays in payment of subsidy. The chair acknowledged the concern of industry and conveyed former Prime Minister’s appreciation for the vital role played by fertilizer industry in the agriculture growth. He also appreciated the patience and prudence of the industry, which in spite of cash flow problems, did not disrupt supply of subsidized fertilizer to the farmers.

The meeting reviewed the pending payments of previous subsidy schemes of 2015/16 and 2016/17 and simplified the process. It was decided that Ministry of National Food Security and Research will release all the pending payments expeditiously in accordance with originally notified mechanism through SBP, avoiding any verification processes. The chair also directed the Secretary Finance to issue the new notification to ensure timely reimbursement of subsidy claims in future.

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The participants expressed their satisfaction on the amicable resolution of the subsidy crisis through timely intervention of PM Office. The Chairman Fertilizer Industry Advisory Council, on behalf of the industry expressed gratitude to the former Prime Minister for kind direction to resolve the issue.

He also thanked Secretary to Prime Minister for taking personal interest in redressing the situation and reposing trust in the industry, and pledged to continue passing on the benefit of the Scheme to the farmers, while ensuring uninterrupted supply of Urea. The industry also appreciated support of the Prime Minister office, Ministry of Finance, FBR and Ministry of National Food Security and Research in resolving this long outstanding issue.

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