STAFF REPORT IBD: The prices of fertilizers may go up in the country in coming days as caretaker Federal Minister for Petroleum and Natural Resources has proposed to cut the gas subsidy to fertilizer plants.
According to sources, the proposal has been tabled in order to ensure conformity in gas prices for all sectors using gas. However, it has drawn sharp reaction from leading companies in fertilizer business who are less worried for their profit margins.
Experts say that the proposed price hike will increase Rs 800-1000/bag and encourage fertilizer import attractive than local production. Thousands of related employees will also lose jobs and enhance joblessness in the country.
The change in price subsidy issue requires thorough deliberations which should emphasize on revamping fertilizer policy by including inputs from all stakeholders including the downtrodden farmers and peasents. The new government may take on this task.
Pakistan Agriculture amounts to 23 per cent of total GDP and employs over 43 per cent of total workforce of Pakistan, anything hurtful the agriculture economy can have significant reverberations on all the sectors which takes feed from the agri – earnings, increase in fertilizer prices can not only reduce GDP but hamper further growth of our already troubled economy.