Gas utility

Author:

Sir: It is a matter of remarkable pride for Pakistan that our nation is considered as an important agricultural producer improving food-security on an international scale. Nearly 70 percent of Pakistan’s population is directly or indirectly employed or engaged with the agricultural sector. Pakistan’s economic sustainability is primarily based on its agricultural output. Therefore, the government must facilitate and allocate rich incentives for agriculture.

Fertilizer is one of the most essential inputs that play a vital role in the development of agriculture in the country. The government of Pakistan must appreciate the fact that our fertilizer manufacturing industry is adding value to natural gas — a scarce resource. The fertilizers industry is consistently optimising the utility of our precious natural gas reserves, as it is the only sector that does not burn gas solely to operate the fertilizer factories. Gas is actually used as a basic raw material for producing urea.

Natural gas is an essential input in fertilizer contributing around 80 percent to the total production cost as fuel and feedstock. Therefore, giving gas-subsidy to the fertilizer manufacturing industry is worth every penny. It is a highly productive incentive, being given to an essential industry that provides impetus to the whole economy, while the fertilizer sector optimally uses 26 percent of the nation’s gas supplies to add tremendous value by converting raw gas into urea grains.

Over the years, Pakistan’s fertilizer industry has been suffering due to gas shortages, which leads to the curtailment of gas supply to this essential sector. Rising prices of gas also pose a serious threat to the national economy. The government must find a sustainable solution to this challenge.

SYED FAKHIR ALI

Faisalabad