PEW asks Govt to review fertiliser subsidy decision
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Keeping IMF away from Pakistan’s agri sector in national interest
The Pakistan Economy Watch (PEW) on Thursday asked the government to revisit decision to continue subsidising fertiliser sector.
The Economic Co-ordination Committee of the cabinet has recently decided to continue subsidising fertiliser sector which may not bring the desired outcome, it said.
Continued subsidy to the fertiliser sector will not benefit the farmers but the industrialists who have pushed country into high food inflation, said Dr Murtaza Mughal, President PEW.
He said that a reason behind reduced wheat output which has threatened the food security in country is the unjustified hike in the prices of fertilise leaving many farmers unable to buy the vital input.
Dr Murtaza Mughal said that fertilise prices are already more than that in the international market which call for a review of the recent subsidy decision as well as the that of the Fertilise Policy 2001.
He said that Competition Commission of Pakistan has already penalised two major manufacturers who raised prices almost 100 per cent despite getting Rs 77 billion subsidy from government in three years.
Now the fertiliser mafia will push up prices again to unfair levels as government decision to eliminate energy subsidies has given them a golden opportunity to maximise their windfall which will trigger food inflation, he observed.
He informed that only 13 per cent of the total global wheat output is traded by countries enjoying a surplus while rest is stocked to ensure food security. However, there is no band on exports or measures to curb smuggling in Pakistan despite looming food crisis.
Dr. Mughal asked the government to keep IMG away from the agriculture sector lest it help western food conglomerates to trap Pakistan for their profits.
