ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet stated that fixation of price of imported urea at par with domestic urea would help the government in saving of around Rs750 million and reduce estimated subsidy impact from Rs22.9 billion to Rs22.2 billion.
The ECC meeting on January 11, 2023 was informed by the Ministry of Industries and Production in a summary with regard to revision of imported urea price that a summary to this effect was moved on December 30, 2022 which was considered by the ECC in its meeting on January 3rd 2023; however, it was deferred.
The ECC was told that for the week ending on January 5, the Pakistan Bureau of Statistics (PBS) has reported average market prices for urea fertiliser between the range of Rs2,543 to Rs2,678 per bag which is approximately Rs103-238 per bag above the price notified by the private companies.
In addition to this, Sui Northern Gas Company Limited (SNGPL) based plants have been shut down creating a psyche of shortage in the market.
Urea import: ECC tells TCP to explore options
The ministry added that imported urea ships have arrived and currently, the imported urea is shifted to NFML’s store and sale of imported urea is expected to augment the difference in demand and supply and stabilise the prices in the market. Thus, fixation of price of imported urea at par with domestic urea would help government in saving of around Rs750 million which would reduce the subsidy impact from estimated Rs22.9 billion to Rs22.2 billion.
The ministry proposed that dealer transfer price (DTP) of 50kg imported urea bag be fixed at Rs2,340 per bag by the NFML and incidental charges estimated by the NFML may be approved as under transportation charges from Karachi Port Trust (KPT) at Rs421 per bag and transportation charges from Gwadar Rs835, followed by TWPP bags Rs63, stock handling warehouse and labour charges Rs110, total incidental charges from KPT would be at Rs594 and from Gwadar at Rs1,008. The ministry requested for approval of dealers transfer price and incidental charges, which were approved by the ECC.
Copyright Business Recorder, 2023
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