Although, the government had allocated Rs 800 million subsidy for the manufacturers of phosphatic and potassic fertilisers while Rs 200 million for importers of the same in the Budget 2010-11 but no amount has been released so far. Following queries of the members, the information was provided to the National Assembly Secretariat.
The government provides feed gas to fertiliser sector at lower rate Rs 102/mmbtu as compared to industrial rate of Rs 382/mmbtu. The annual consumption of feed gas by fertiliser industry stands at 111,227,950 mmbtu. In this way total annual implicit subsidy in the form of cheaper feed gas comes to Rs 3 1.14 billion.
Meanwhile, in another reply, it was informed that the growth rate of LSM industries has declined from 4.84 percent in 2009-10 to - 1.77 percent in 2010-11 (July-Dec). The main reasons for the decline are said to be gas curtailment, devastating floods, international economic downturn, loadshedding, high markup rates and the law and order situation.
Similarly, Rs 3.2 billion were allocated in the PSDP (2010-11) for 45 projects to rejuvenate the industrial sector. These projects specially focus skill development, technology upgradation, reducing energy losses and development of emerging sectors to achieve the diversification goals. Answering another question, it was informed that as many as 1909 industries fell sick across the country. According to details, as many as 480 industrial units in Punjab, 779 in Sindh, 568 in KP and 82 in Balochistan are sick.
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