Islamabad: Because urea makers are internationally competitive and can operate without government support, the fertiliser industry has asked for a total deregulation of the sector, with no gas subsidies or other perks.

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Deregulation, on the other hand, is projected to raise the cost of urea and other fertilisers, affecting the agriculture industry and perhaps raising the cost of food produced in the country.

He said that increased gas revenue of Rs89 billion from the fertiliser industry might cover the Rs65 billion subsidy for small landowners. Around 90% of the farmers hold around 48% of the land, which is less than 12.5 acres in size.

The CFO, on the other hand, stated that the fertiliser industry plays a key role in ensuring Pakistan’s food security by supplying an appropriate and inexpensive supply of urea.

In comparison to international levels, he believes the government is paying the sector with a feed gas subsidy of Rs842 per bag on a spot basis, while the industry is passing on six times greater advantage to the farmers through a discount of Rs5,000 per bag.

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According to him, the fertiliser sector might contribute more than $3 billion to decreasing the trade imbalance in 2021 through import substitution.

As a result of the significantly lower prices, Imran said the local fertiliser industry would save farmers from an additional burden of Rs363 billion in 2021 as well. He said 96% of the income attributable to shareholders of the fertiliser companies was contributed towards national exchequer last year.

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