Fertiliser business: Sindh, K-P reluctant to pitch in subsidy pool

Despite centre’s requests, provinces have yet to respond

ISLAMABAD: The provincial governments of Khyber-Pakhtunkhwa (K-P) and Sindh are still reluctant to provide their share of funds in the Rs20-billion fertiliser subsidy pool.

“The government has started implementing the subsidy in collaboration with the provincial governments, however, two provinces have not yet provided their due share,” said an officer in the Ministry of National Food Security and Research while talking to The Express Tribune.

The federal government had announced the Rs20 billion subsidy on DAP fertiliser, where it said it would make 50% of the contribution while the remaining 50% would be paid by the respective provincial governments. As per the requirement, Punjab and Balochistan governments agreed to provide Rs7 billion and Rs0.4 billion, respectively. The remaining amount was to be provided by Sindh and K-P.

“Despite sending written requests, the two provinces have not responded positively,” said the officer, adding that Sindh had dues worth Rs2.5 billion, while the remaining amount to be contributed is by K-P.

“In case of failing to give their due share as per their requirement, they will be excluded from the subsidy,” he added.

The other side

It has been learned that Sindh wants this amount to be borne by the federal government, while K-P is seeking an instalment plan.

“The government has opened up an account with the State Bank of Pakistan for this fund and would disburse the subsidised amount to fertiliser manufacturers and importers within 15 days of their purchase,” said the official.

Recently, the federal government and fertiliser manufacturers /importers devised a formula for the disbursement of subsidy among the importers and manufacturers, who would provide subsidised DAP to the farmers. Under the formula, Rs500 subsidy would be given on a 50-kg bag of DAP and Rs217 on the 50-kg bag of nitrophosphate and NPK fertiliser.

The country would be divided in six or seven zones, while a monitoring committee would also be established to keep check on the implementation process.

Published in The Express Tribune, October 30^th, 2015.

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