ISLAMABAD - Federal Minister for Finance and Revenue Shaukat Tarin on Wednesday directed the chairman of Federal Board of Revenue (FBR) to expedite disbursement of refunds to improve the liquidity position of the fertilizer industry.
He made these remarks while chairing a meeting with the chairman and other members of the Fertilizer Manufacturers of Pakistan Advisory Council (FMPAC) held at the Finance Division. While welcoming the chairman and members of FMPAC, the finance minister lauded the contribution of the fertilizer industry in the national development. The fertilizer industry is of paramount importance in the agriculture sector as agriculture 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 government is firmly committed to encourage and incentivize fertilizer manufacturers as well as exporters to meet domestic demand effectively. There is a need to bring in more investment in the fertilizer sector for enhancing domestic production and higher crop yields, he added.
The finance minister further stated that the COVID-19 pandemic has delivered a supply shock to the global commodity markets and pushed up the prices of agricultural inputs substantially. The present government is providing gas/RLNG at concessional rates to the fertilizer plants for sustainable production during these testing times.
The chairman FMPAC apprised the finance 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 finance minister also constituted a Committee comprising Secretary M/o NFS&R, 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 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 M/o National Food Security & Research, Chairman FBR and other senior officers were also present during the meeting.