ISLAMABAD (March 12 2004): A meeting of the fertiliser sector was informed here on Thursday that the demand and supply gap of fertilisers was widening, which may push Pakistan's agriculture-based economy into trouble in the months to come.

Less investment due to stalled fertiliser policy in 2001 was identified as a major reason of shortage.

A participant of the meeting told Business Recorder that the manufacturers have conveyed to the policy makers that the current fertiliser policy has failed to attract fresh investment for the sector and if the situation remained unchanged it might take turn for the worst by December 2004.

The manufacturers were of the view that incentives in the form of reduction in duty and taxes on import of machinery for fertiliser industry could avert the looming crisis.

This followed constitution of a 12-member committee by Industries and Production Minister Liaquat Ali Jatoi, who chaired the meeting.

It comprises industries and production secretary, MINFAL secretary, Petroleum and Natural Resources secretary, Central Board of Revenue (CBR) chairman, representative of Finance Division, Board of Investment (BoI), National Fertiliser Development Center chief, Planning and Development Division, chairman, National Fertiliser Corporation, general manager, Marketing Fauji Fertiliser Company, managing director Fauji Fertiliser Bin Qasim, chief executive, Engro Chemicals (Pvt.) Limited and executive director, Dawood Hercules Limited. The committee will submit its recommendations within 10 days.

The fertiliser manufacturers also informed the meeting that there would be no shortage of DAP as three consignments of around 70,000 tonnes of DAP were on their way to meet Pakistan's demand for the coming season and about 150,000 tonnes would arrive within next two months.

It was also informed that Fauji-Jordan was producing 1,600 tonnes of DAP per day.

Secretaries of industries and production, MINFAL, chairman, Board of Investment, senior officers of relevant ministries and representatives of all the fertiliser manufacturers attended the meeting.

The industries and production minister informed the manufacturers that the government was committed to provide conducive environment for the investors and to encourage investment in the fertiliser sector, therefore, fertiliser manufacturers might provide any suggestions regarding new investment.

He said the government was fully conscious to provide fertilisers to the growers at reasonable rates in order to increase agricultural productivity.

Jatoi extended an assurance to the manufacturers that the fertiliser industry would be provided natural gas throughout the year to ensure smooth supply of fertilisers to the farming community at low rates without any disruption.

The problems/issues of fertiliser industry, particularly high gas charges, unavailability of gas during winter months also came under discussion.

Courtesy Daily Business Recorder