ISLAMABAD: The Economic Coordination Committee (ECC) on Monday endorsed continuation of the previous fertiliser subsidy scheme for fiscal year 2016-17 on the same terms, conditions and modalities.
The government is paying Rs 200 per bag subsidy to support the farmers. The ECC, which met under Finance Minister Ishaq Dar, also approved export of 0.3 million tonnes of urea fertiliser until April 28 without any subsidy. The government is providing Rs 200 per bag subsidy; however, this subsidy will not be available on exports of fertiliser. The export quantity will be monitored by the State Bank of Pakistan (SBP) like the mechanism adopted regarding sugar exports. The Fertilizer Review Committee (FRC) will monitor domestic prices of urea on a monthly basis and in case of an abnormal increase in the retail price as per a weekly sensitive price index, the FRC will recommend the ECC for discontinuation of further exports. The permission of export was given in view of around one million metric tonnes surplus Urea fertilizer in the country. The ECC approved, in principle, payment of outstanding claim of PASSCO on account of supply of wheat in 2008-2009, and directed the National Food Security and Research to reconcile the outstanding amount with the Finance Ministry.
