ISLAMABAD: As pending subsidies disbursement remains frozen; fertilizer industry has issued threats of further price rises as the government is showing an unwillingness to release their claims.
Last week, the fertilizer manufacturers had jacked up prices of urea by Rs100 per bag and could increase it by a further Rs106 due to the finance ministry’s unwillingness to release the pending subsidy, reported Express Tribune.
According to industry players, the Finance Minister Dr Miftah Ismail was not listening to the request of the National Food Security and Research Minister Sikander Hayat Khan Bosan, who was keenly interested in providing relief to the crisis-stricken farmers.
With the Kharif season already started, the increased prices of Urea will severely impact the farmer’s community income, as cotton is their major crop.
Cotton production has touched its lowest levels ever in Pakistan’s history under the present government’s tenure due to lack of attention to farmers.
In a meeting held on Friday at the Ministry of National Food Security and Research premises, the fertilizer manufacturers offered to withdraw the price hike provided the government released its pending subsidy claims.
Mr Bosan shared the list of incentives provided to the sector during the meeting which include restructuring of sales tax on inputs in the budget for next FY 2018-19.
But he expressed worry over the one-sided price rise of urea which caused embarrassment for the outgoing government.
In response, representatives of the fertilizer industry laid out the chain of events starting from the inception of the subsidy scheme and its contribution of Rs106 per bag.
Adding to the problems faced by the fertilizer industry, they shared about the processing of subsidy claims and the eventual financial cost borne due to delay in payments.
The fertilizer industry accused the government of being unable to meet its promises and unwillingness to disburse the subsidy on part of Ministry of Finance.
The fertilizer industry representatives informed the meeting the prices of urea should have risen by Rs200 per bag highlighting the Prime Minister’s office was given warning on March 29th, 2018 regarding the potential rise in prices after 15th April if a further delay was exercised in the disbursement of subsidy claim.
However, Ministry of National Food Security secretary pinpointed the relief measures provided by the government like provision of subsidized gas, export permissions and restriction on imports.
And the secretary disclosed over 80 percent of the disbursement of subsidy claims had been processed till February 2018 for FY 2017-18 and expressed optimism Rs4.74 billion would be disbursed in coming days.
