Track-and-trace system: Dar, FBR told about challenges facing fertilizer plants

ISLAMABAD: Fertilizer industry Wednesday categorically conveyed to the Finance Minister Ishaq Dar and Federal Board of Board (FBR) that the Track and Trace System installed on fertilizer plants is suffering from serious operational issues.

In a letter to Federal Finance Minister Ishaq Dar and Chairman FBR Asim Ahmad on Wednesday, fertilizer manufacturers of Pakistan Advisory Council (FMPAC) requested the government to review the enforcement of non-compatible track & trace system installed on the fertilizer manufacturing facilities.

The industry is of the view that the system appears to be imported without technical feasibility study in relation to the obtaining environment in Pakistan. Moreover, no reliable evidence of global performance has been found in the fertiliser industry.

The fertilizer industry was forced to make a huge investment in the installation of the system despite apprehensions expressed in various meetings. The performance of the system has been dismal in the open environment, and the consortium that provided equipment has been unable to attend to the issues.

The fertilizer industry demands replacement of the system or a refund of the amount so invested. Moreover, industry is of the view that enforcement of the system in its present form will lead to a serious disruption in the supply of fertilizer.

Certified seed availability: Track-and-trace system on the cards

According to FMPAC letter to the finance ministry, in compliance with SRO 250(I)/2019 dated 26 February 2019 and Sales Tax General Order No 3 of 2021 dated 11 March 2021, issued by the Federal Board of Revenue (FBR), the Track & Trace System [TTS] deployment project was initiated for the fertilizer industry in February 2022. Tri-partite agreements between the manufacturers, FBR and FBR licencee (M/s AJCL/MITAX/Authentix Consortium) were signed on 14 April 2022 and the TTS was made operational across the entire fertilizer industry from a given deadline of 01 July 2022.

However, the fertilizer industry has raised serious concerns about the suitability of the system for fertilizer production facilities after confronting multiple technical issues during, and post implementation of T&T system project. The letter states that the incompatibility of the system with the harsh and humid outdoor environment of the fertilizer industry renders it ineffective and unfit for continuous use.

The stamp detection efficiency is far less [as low as 50%] than guaranteed value of more than 99 percent. Stamps reconciliation also generates error with actual production reporting, etc. Despite the best efforts of the FBR licencee, FBR and industry, these technical issues remain unresolved.

Commenting on the matter, Executive Director FMPAC, Brig Sher Shah Malik (retd) said that the fertilizer industry is one of the most compliant sectors of Pakistan and has always supported the government’s efforts on documentation of the economy.

Copyright Business Recorder, 2022