ECC allows manufacturers to include financing costs in Urea prices


ECC prices

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has allowed manufacturers to include financing costs which will eventually increase the cost of Urea by Rs 169 per bag in the local market.

Sources said that the Ministry of Industries and Production (MoI&P) has presented the summary with regard to the mechanism of sales of imported Urea at a basket price along with locally manufactured Urea.

The MoI&P on the direction of caretaker prime minister have prepared different modalities in consultation with the fertilizer industry of lifting imported Urea from Port and National Fertilizer Marketing Limited (NFML) warehouses.

PC greenlights transaction framework for PIA’s stake sale

Sources said that MoI&P has proposed including all incidentals related to lifting and NFML’s associated cost in the current urea prices based on weighted average sale prices.

In addition, it also proposed that manufacturers will make Rs 30 billion payment of lifted imported urea to the government in 45 days and in return the manufacturers will include financing cost in price calculation for recovery period till December 2024, sources added.

It is pertinent to note that farmers are currently grappling with acquiring Urea and other fertilizers through unofficial channels due to the failure of district administrations in ensuring the availability of Urea fertilizers at government-specified rates.

Farmers are compelled to purchase Urea in the black market at prices ranging from Rs 4,500 to Rs 5,000 per bag, significantly higher than the government-notified rate of approximately Rs 3,500.

Sources said that prices of Urea will further increase in the market which eventually put further burden on compelled farmers.

The MoI&P also informed the ECC that the government will continue its efforts to provide gas to all fertilizer plants enabling them to produce urea and recover the cost of imported urea over a 12 months’ period and to avoid further imports.

According to the Finance Division, the ECC approved the mechanism for weighted average price with the direction to NFML for ensuring reasonable price for urea and the MoI&P to provide oversight to the whole process.

OTHER DEVELOPMENTS AT THE ECC MEETING

The Intelligence Bureau (IB) officials briefed the ECC about the recent surge of terrorism which needed effective counter measures to thwart nefarious designs of terrorists. The ECC approved the funds as Technical Supplementary Grant (TSG) for up gradation, technical enhancement and field activities of the IB with releases on need-basis.

Pakistan’s car imports down by 7% in five months

The ECC also considered and approved the summary of National Health Services Regulation and Coordination for provision of Technical Supplementary Grant (TSG) amounting to Rs 3,568.719 million in favour of Federal Directorate of Immunization (FDI), and urged the provinces to clear their pending liabilities.

ECC also considered the summary of the Finance Division for signing the addendum to the Subsidiary Grant Agreement (SGA) regarding financial inclusion & infrastructure project and exemption from relending policy of release of funds to State Bank of Pakistan and accorded its approval.

This grant, ECC was told, would also be utilised for Davis Cup (Tennis) with India and other mind games like scrabble and chess. The Committee approved provision of additional funds amounting Rs 100 million as Technical Supplementary Grant (TSG) for FY 2023-24.

This grant, ECC was told, would also be utilised for Davis Cup (Tennis) with India and other mind games like scrabble and chess. The Committee approved provision of additional funds amounting Rs 100 million as Technical Supplementary Grant (TSG) for FY 2023-24.

You May Also Like