ISLAMABAD: Finance Minister Shaukat Tarin stated on Wednesday that the government is firmly committed to encourage and incentivise fertiliser manufacturers as well as exporters to meet domestic demand effectively.
While chairing a meeting with the chairman and other members of the Fertiliser Manufacturers of Pakistan Advisory Council (FMPAC), the finance minister underlined the need to bring in more investment in the fertiliser sector for enhancing domestic production and higher crop yields, he added.
The finance minister acknowledged the contribution of the fertiliser industry in the national development and noted that the fertiliser industry is of immense importance in the agriculture sector as agriculture contributes about 22 percent to Pakistan’s Gross Domestic Product (GDP) and employs almost half of Pakistan’s employed workforce in agro-based industries directly or indirectly.
He added that the Covid-19 pandemic has delivered a supply shock to the global commodity markets and pushed up the prices of agricultural inputs substantially. The present government is providing gas/RLNG at concessional rates to the fertiliser plants for sustainable production during these testing times.
The chairman FMPAC apprised the finance minister about the challenges faced by the fertiliser industry such as cash flow crunch, mismatch between input and output GST on urea production etc.
The finance minister directed the chairman FBR to expedite disbursement of refunds to improve the liquidity position of the fertiliser industry.
He also constituted a committee comprising secretary Ministry of NFS&R, Additional Secretary (CF) Finance Division and other relevant stakeholders to hold a consultative session and bring forward recommendations with mutual consensus for a way forward.
He assured full support and facilitation to the fertiliser industry on the occasion.
The chairman FMPAC and other representatives of the fertiliser industry complimented the finance minister for his pro-farmer approach and assured full cooperation.
Among others, secretary Finance Division, secretary Ministry of National Food Security and Research, the chairman FBR, and other senior officers were also present during the meeting.
Copyright Business Recorder, 2021
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