ISLAMABAD: The Ministry of Finance has asked the Ministry of Industries and Production to cut subsidy being given on supply of RLNG to two fertilizer plants in Punjab, according to Business Recorder.
The two plants named in the report — Fatimafert and Agritech, remained non-operational from February 14 to 25, 2019 and the Economic Coordination Committee (ECC) had directed the Ministry of Industries and Production to ensure continuous operation of the two plants until October 2019.
According to Business Recorder, a meeting held on Monday in the Ministry of Industries and Production could not reach any conclusion regarding the continued supply of RLNG as the Finance Ministry argued the projected subsidy was on the higher side.
According to a source cited in Business Recorder, producing urea from imported RLNG is costing the government even more than the subsidy on expensive imported urea. Thus, by discontinuing the supply of subsidized RLNG from September 2019, the government can avoid additional expenditure on both subsidies as well as imports of urea.
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