Fertilizer manufacturers have shown their concern on the procedural issues in disbursement of subsidy offered by the government of Pakistan during a meeting held of the Fertilizer Manufacturers of Pakistan Advisory Council (FMPAC). The meeting was chaired by Lt. General (Retd) Shafqaat Ahmad MD FFC & Chairman FMPAC, attended by the CEOs of Engro, Fatima, Agritech and representatives of other member companies.
Members of the council expressed their concern on the procedural complexity in existing fertilizer subsidy disbursement mechanism, resulting in tying up substantial amount, already passed on to the farmers. The Council also reviewed the last year’s results that reflect negative trends due to higher costs of inputs.
The Council discussed the export of 0.3 million tons of urea and appreciated the government decision which will not only reduce the surplus fertilizer inventory but will also earn foreign exchange. However, it was pointed out that the export procedure of sugar cannot be replicated for urea due to different logistic and international markets. The time and quantity approved for export also needs to be reviewed.
The council expressed industry’s resolve to extend full support to government’s initiative to provide fertilizer at affordable prices to improve farmers’ economics and hoped that in 2017 the government will address genuine concerns of the industry and come forward with more imaginative ways for benefit of farmers and fertilizer industry which are the main contributors to the national economy.