Daily Times

The government has resolved to recoup the Rs 24 billion subsidy provided to two Punjab-based fertilizer plants, Fatima Fertilizer and Agritech, from industrial and electricity consumers. This decision is anticipated to escalate the cost of consumer goods and electricity production.

According to media reports, an additional agenda summary was presented in a recent meeting, proposing an extension of the subsidized imported gas supply to the two fertilizer plants. Despite a dissenting note from the Petroleum Minister, the proposal received approval.

Initially, the federal government had passed this subsidy burden onto household consumers. However, the recent decision shifts this load to industrial and electricity sectors. Previously, the Economic Coordination Committee (ECC) aimed to recover Rs 25 billion from domestic consumers for subsidies provided between October 2023 and March 2024. This recovery plan was halted as OGRA did not approve it, leaving the amount pending. The ECC, chaired by Finance Minister Muhammad Aurangzeb, convened on Monday to review a five-point agenda. The committee sanctioned a technical supplementary grant of Rs 23.63 lakh for various expenses, subsidies, and allowances.

Additionally, the ECC approved Rs 20 crore funding for the Intelligence Bureau Division and a substantial grant of Rs 4.05 billion for the Strategic Plans Division and SPARCO, aimed at fulfilling the requirements of the Pakistan Multi Mission Communication Satellite System project.