ECC approves provision of 70mmcfd RLNG to fertiliser plants to reduce import bill.

ISLAMABAD -- The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved provision of 70mmcfd RLNG to fertiliser plants to reduce the import bill of 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. Ministry of Industries and Production presented a summary requesting for provision of RLNG to SNGPL based plants (Agritech and Fatima Fertilizer) during Rabi season 2021-22. The ECC 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.

Officials informed that projected requirement of urea fertiliser 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 fertiliser for farmers at affordable prices.

Latest industry data shows that the urea market remained adequately supplied and, in August this year, offtake rose by 10% to 629,000 tons compared to last year. On a year-to-date basis till August, 4.07 million tons of urea has been sold against 3.78 million tons during the same period last year. Around 184,000 tons of urea inventory is also available with fertilizer manufacturers to meet market needs.

The ECC considered and approved a summary tabled by the Aviation Division for GOP cash support as required by PIAC. The airline has experienced significant dip in revenues and cash flows due to pandemic and unprecedented travel bans/lockdowns imposed by various countries. Moreover, the ECC also approved the enhancement of existing approved guarantee enabling PIAC to overcome its financial challenges.

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