GIDC on urea to be abolished to benefit Agriculture sector

June 11, 2019 (MLN):  As the federal budget for the next financial year is being announced today, it is anticipated that the GIDC (Gas Infrastructure and Development Cess) of Rs 48.6 Billion may be abolished on Urea fertilizer to benefit the agriculture sector.

This will reduce the price of Urea fertilizer by Rs 405 per bag.

Besides, the Gas prices for fertilizer industry are expected to be reduced to the previous level (Rs 12.24 Billion) which will decrease the price by Rs128 per bag.

As a result of these implications, following benefits will likely accrue:

• Facilitate balanced used of fertilizers.
• Prevent leakage of financial resources and directly benefit farming community.
• Positive effect on rural economy be increased crop productivity.

As the cost of production in Pakistan is one of the highest in the world, making this critical sector non-competitive and non-feasible.

The proposed measures will reduce input cost to help the agriculture sector sustain and grow.

Copyright Mettis Link News