ISLAMABAD, Aug 25 (APP): Federal Minister for Finance and Revenue, Shaukat Tarin here on Wednesday reaffirmed government’s commitment to encourage and incentivize fertilizer manufacturers as well as exporters to meet domestic demand effectively.
Chairing a meeting with the Chairman and other members of the Fertilizer Manufacturers of Pakistan Advisory Council (FMPAC), the minister highlighted the need to bring in more investment in the fertilizer sector for enhancing domestic production and higher crop yields.
While welcoming the Chairman and members of FMPAC, the minister lauded the contribution of the fertilizer industry in the national development.
The fertilizer industry was of paramount importance in the agriculture as this sector contributes about 22% to Pakistan’s Gross Domestic Product (GDP) and employs almost half of Pakistan’s employed workforce in agro-based industries directly or indirectly.
The minister further stated that the COVID-19 pandemic had delivered a supply shock to the global commodity markets and pushed up the prices of agricultural inputs substantially.
The present government, he said, was providing gas / RLNG at concessional rates to the fertilizer plants for sustainable production during these testing times.
He directed the Chairman Federal Board of Revenue (FBR) to expedite disbursement of refunds to improve the liquidity position of the fertilizer industry.
He also constituted a Committee comprising Secretary Ministry of National Food Security and Research, 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 fertilizer industry on the occasion.
The Chairman FMPAC apprised the minister about the challenges faced by the fertilizer Industry such as cash flow crunch, mismatch between input and output GST on Urea production etc.
The Chairman FMPAC and other representatives of the fertilizer 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 & Research, Chairman FBR and other senior officers were also present during the meeting.
