KARACHI: Engro Fertilizers Ltd. has expressed gratitude to the government for eliminating the subsidy for manufacturers that obtain gas from the Sui Northern Gas Pipeline Ltd. (SNGPL) network, which accounts for 60% of all fertiliser manufacturing capacity, despite the industry’s harsh criticism of the government’s massive gas tariff hike.
The cost of making fertiliser has grown by about 300 percent due to the increase in feedstock prices, which are now Rs1,597 per mmBtu from Rs580.
The Mari network’s 40 percent residual fertiliser manufacture capacity is still available for purchase at the discounted rate of Rs580 per mmBtu.
According to the company, Pakistan’s current financial situation is precarious and the country is experiencing a debt crisis, with over $27 billion in foreign debt that needs to be paid back by November 2024 and a debt-to-GDP ratio that is currently above 70%. Pakistan cannot afford more fiscal strain or partial solutions that fall short of fully resolving the country’s issues.
“For Pakistan to truly move ahead and breaking away from the vicious pattern of debt, its reliance on government aid must end,” stated Engro.
The manufacturer of fertilizer, Engro, urged the government to eliminate every subsidy from the fertiliser industry. Engro stated that this complete removal would allow the government to collect Rs150 billion, which could then be allocated to specific agricultural initiatives and endeavors that spur economic growth and activity in the nation.
NKATI criticizes the gas price increase
President of the North Karachi Association of Trade and Industry (NKATI), Faisal Moiz Khan, has denounced the interim government’s large hike in gas pricing, calling it catastrophic for industry and a major economic danger.
He called on the government to quickly undo the most recent increase in gas prices and to set gas prices after consulting with relevant parties in order to lessen the burden on the costs associated with industrial output.
SOURCE: DAWN NEWS
