ISLAMABAD - The Economic Coordination Committee (ECC) of the Cabinet on Monday has approved the provision of gas to Pak Arab and Fauji Fertlizer Bin Qasim Limited (FFBQL) to increase the domestic production of urea in the country.
Federal Minister for Finance and Revenue Shaukat Tarin, presided over the meeting of the Economic Coordination Committee (ECC) of the Cabinet, held at the Finance Division. Secretary, Ministry of Industries and Production presented a summary regarding provision of gas to Pak Arab and Fauji Fertlizer Bin Qasim Limited (FFBQL) to review demand for urea fertilizer during the Rabi season 2021-22.
After detailed discussion, the ECC approved maximum provision of gas to Pak Arab (58MMCFD) and FFBQL (63MMCFD) to ensure that estimated demand for urea fertilizer is met through domestic production. The said decision will stabilise prices of urea fertilizer and ensure its smooth supply throughout the country during Rabi season 2021-22. In last month, Ministry of Industries and Production had presented a summary requesting for provision of RLNG to SNGPL based plants (Agritech and Fatima Fertilizer) during Rabi season 2021-22. The ECC had approved provision of 70MMCFD RLNG with the direction to hold a consultative session with the representatives of fertilizer manufactures to workout overall demand for urea in the country. The ECC further directed to consider the possibility to import urea (if needed) to maintain buffer stocks. Later, on a summary moved by the Ministry of Industries and Production, the ECC approved a tender for import of 100,000 MT of urea for building strategic reserves of urea fertilizer during the Rabi season FY 2021-22. Projected requirement of urea fertilizer is estimated at around 3.2 MMT for Rabi season 2021-22. However, urea demand would be met by domestic production. According to the Ministry of Industries and Production, domestic production of urea fertilizers would slash the urea imports thus will have huge relief on import bill and balance of payments. Moreover, it will ensure availability of fertilizer for farmers at affordable prices. However, the government had decided to import 100,000 MT of urea for building strategic reserves.
Committee agrees maximum provision of gas to Pak Arab (58MMCFD) and FFBQL (63MMCFD) to ensure estimated demand for urea fertilizer is met through domestic production
The ECC considered and approved a summary presented by the Ministry of Information Technology and Telecommunication regarding allocation of Rs2 billion as a single line budget for Pakistan Software Export Board (PSEB), an apex government body, mandated to strengthen and promote the IT sector exports of Pakistan. Moreover, the ECC also approved the allocation of Rs4 billion to PSEB for disbursement of cash reward incentive in order to incentivize IT exports and to encourage documentation of exporters/exports. The cash reward incentive shall be provided for the IT and IT-enabled services exporters promoting export proceeds through banking channels via SBP allocated banking codes.
Lastly, Ministry of Commerce presented a Textile and Apparel Policy, FY 2020-25. After due deliberation, the ECC constituted a sub-committee comprising of representatives of Ministry of Commerce, Finance Division, Ministry of Industries and Production, Power and Petroleum Divisions, FBR and State Bank of Pakistan to review and present an updated policy before ECC in a couple of weeks.
Federal Minister for Industries and Production Khusro Bakhtiar, Federal Minister for Energy Hammad Azhar, Federal Minister for Railways Azam Khan Swati, Minister of State for Information Farrukh Habib, Advisor to PM on Commerce Abdul Razak Dawood, Federal Secretaries and other senior officers participated in the meeting.
