The federal cabinet has instructed the Ministry of National Food Security and Research to develop a mechanism to ensure fertiliser prices remain stable, following recommendations issued by a committee chaired by the Deputy Prime Minister, Business Recorder reported, citing officials familiar with the matter.
The directive is linked to a recent decision of the Economic Coordination Committee (ECC), which has approved the supply of indigenous gas to four fertiliser plants.Â
Under the arrangement, Fatima Fertilizer, Agritech and Fauji Fertilizer Company will receive gas from Mari fields, while Engro Fertilizers will be supplied through the SNGPL network following the diversion of 110 MMCFD of gas from the Guddu power plant.
BR cited sources as saying that the Petroleum Division circulated its proposal to multiple ministries, including Finance, Planning, Industries, Food Security, Power, Climate Change and Privatisation, for comments. Most divisions endorsed the plan, while the Finance Division submitted detailed observations seeking clarification.
A committee meeting chaired by the Deputy Prime Minister on September 16 reviewed the proposal. The meeting, attended by stakeholders including the ministers for Privatisation and Climate Change, endorsed the Petroleum Division’s plan and directed officials to complete procedural requirements before submitting it to the ECC.
During ECC discussions, the Petroleum Division briefed the forum on the need for changes in gas allocation due to shifts in supply dynamics. The Finance Division raised three key queries: how surplus RLNG would be handled, the strategy for recovering long outstanding Gas Infrastructure Development Cess from fertiliser firms, and what action would be taken if companies failed to honour their commitment not to raise fertiliser prices.
Officials said the Petroleum Division explained that broader measures were being considered for managing excess RLNG volumes and that discussions on resolving the GIDC issue were ongoing. ECC members also proposed creating an implementation framework to ensure fertiliser producers adhere to fixed pricing.
The ECC subsequently approved the summary on allocating and pricing gas from Mari field for fertiliser production. It also directed that a formal mechanism be established to secure price stability, consistent with the recommendations of the Deputy Prime Minister–led committee.
According to sources, the federal cabinet has since endorsed the ECC’s decisions in a recent meeting.
