ISLAMABAD: Finance Ministry has refused to give subsidy on imported urea due to financial constraints and International Monetary Fund (IMF) conditions.
This information was shared with the federal cabinet at a recent meeting while ratifying decisions of the Economic Coordination Committee (ECC).
During the ensuing discussion, the Cabinet was informed that in case the gas supply for the urea manufacturing RLNG based plants, viz Fatima Fertilizer and Agritech, is discontinued after September 30, 2024, there would be an estimated shortage of 351,00 MT of urea during the upcoming Rabi season 2024-25.
The Cabinet was further informed that the Finance Division, in view of the financial constraints and IMF conditions, had shown its inability to provide any subsidy on imported urea.
The Cabinet directed the Ministry of Energy (Petroleum Division) to provide uninterrupted supply of gas to RLNG based plants, i.e. Fatima Fertilizer and Agritech, beyond September 30, 2024. The Cabinet further directed to keep the prices of urea stable and constituted a committee to review the situation and recommend measures to ensure stability of urea prices in the market.
The Cabinet considered the summary of August 5, 2024, titled ratification of the decision taken by the Economic Coordination Committee (ECC) in its meeting held on 2ud August 2024′ submitted by Cabinet Division and directed the Petroleum Division to ensure uninterrupted gas supply to Fatima Fertilizer and Agritech beyond 30th September 2024. Further, the Cabinet constituted the following Committee in terms of rule 17(3) of the Rules of Business, 1973 to propose appropriate measures to ensure stability of urea prices in the market.
