Islamabad, July 19, 2019: The fertilizer industry has voluntarily held back the impact of recent gas price increase, in order to prevent backlash of recent gas price hike from farmers. This was agreed on request of Advisor Industries, Razzaq Dawood.
The Advisor has assured the industry about the settlement of GIDC effective 01 July to mitigate the loss to the industry due to the increased cost of production.
The industry is optimistic regarding the GIDC settlement as agreed by Asad Umer in January this year to reduce the rates by 50 percent since inception and prospectively as well. The fertilizer industry has already paid Rs 127 billion on account of GIDC up to 2015, unlike other sectors withholding the bulk of GIDC payment.
The industry expected settlement of outstanding Rs 20 billion on account of subsidy as well as GST refund to the tune of 24 billion in the process. The industry expected redressal of cashflow challenge through GIDC settlement.
The fertilizer industry has shown its full confidence in the leadership of Razzaq Dawood, who fully appreciated the contribution of the industry to the national economy and food security and expressed his appreciation for the gesture.
The industry has been making major contribution towards the national exchequer. Last year the fertilizer industry contributed to the economic growth of the country is one of the highest taxpayers. It paid Rs. 45 billion in taxes which are virtually equal to the net profit the industry had earned.
Read More: Fertilizer industry seeks GIDC settlement
The industry has passed on Rs. 527 billion benefits to the farmers in terms of lower prices against a gas subsidy of Rs. 127 Billion during the past 9 years. Furthermore, the industry has been offering its extensive support in uplifting the masses through different CSR related projects.
Understanding the Government’s current situation witnessing protests against economic measures that it can’t afford to open another front, the fertilizer industry has decided to give its maximum support to the government on the prevalent price issue. The rise in Feed Gas (62 percent) and in Fuel Gas (31 percent) prices which, as a result, impacted the cost of production by Rs. 210 per bag.
However, the industry has decided to increase the price by the only token of Rs 10 per bag, in anticipation of GIDC settlement. The industry expected the Government to help it by providing a sustained supply of gas at affordable prices to enable it to play a significant role in the development of the economy and national food security.