ECC approves reduction in imported urea price by Rs476 per bag

ISLAMABAD: In view of the surplus stocks of imported urea available with the National Fertilizer Marketing Limited (NFML) mainly because of ‘miscalculation’ done last year, the Economic Coordination Committee (ECC), under the chairmanship of Finance Minister Ishaq Dar, on Thursday approved scaling down the prices of imported urea by Rs476 per 50-kg bag, bringing it down from Rs1,786 to Rs1,310 per bag for farmers.

The ECC of the Cabinet also constituted a committee headed by Minister for National Food Security & Research to ascertain the facts why ‘miscalculation’ was made to allow surplus imported urea into the country as the NFML had to bear a cost of Rs3.5 million per month and incurring handling charges to the tune of Rs21 per bag for total stocks of 276,000 available stocks at the moment.

In order to resolve the issue, the government decided to incentivise the farmers. If the NFML was forced to keep its stocks, its handling charges might cause more losses to the national exchequer.“Dar, being the chairman of the ECC, constituted a committee to ascertain the facts with the mandate to fix responsibility on those who imported surplus urea at the cost of national exchequer,” top officials disclosed to The News after the the ECC, one participant argued that it was difficult to forecast actual requirements of urea so calculation of requirement of urea was made on the basis of 2014 as on January 16, 2014 the off take price stood at Rs1786 per bag and during the period from April-Sept the imported urea stood at 3, 44,000 tons. Now the available stocks with NFML stood at 2, 67,000 tons of imported urea.

The cotton growers were reluctant to purchase urea so keeping in view the situation the ECC approved to pass on benefits to farmers by scaling down the prices further to lure farmers to put sufficient urea for upcoming kharif season.

Pakistan’s cotton production decreased by 29 percent last year that resulted into having negative impact on GDP growth by 1.9 percent so the government had now decided to decrease prices of urea in a bid to incentivise farmers to go ahead with cotton production in the ongoing financial year.

However, according to press statement issued by Finance Ministry here on Thursday, Dar chaired the meeting of the ECC of the Cabinet here at the Prime Minister’s Secretariat. ECC considered and approved the sale of imported Urea available at the National Fertilizer Marketing Limited (NFML) at Rs.1310 per 50 kg bag.

On the proposal brought by the Ministry of National Health Services, Regulation and coordination, ECC gave approval to the exemption from customs duty and sales tax on import of Salter scales for Lady Health Workers Program. UNICEF has provided $1.3 million available under the Gavi HSS-I fund which will be utilized to purchase approximately 38000 Scales and other equipment to be provided across the country to help children affected by stunting. Stunting can be addressed with growth monitoring and nutritional advice during the first three years of a child.

ECC also granted exemption from tax and duties for import of machinery and equipment/construction materials to NHA for infrastructure projects under China Pakistan Economic Corridor (CPEC).

As a step towards cleaner environment and better engine hygiene, ECC allowed the introduction of 92 Research Octane Number (RON) premium motor gasoline (petrol) in Pakistan. Currently the country was using 87 RON premium which is almost abandoned by the world. The new arrangement will be effective from the next cycle of PSO tender in this year. The new cleaner and efficient fuel will have lower emissions. Ogra will monitor the price as was the case in RON 87 PMG.

—Originally published in The News

 

 

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