Economic Coordination Committee (ECC) announced the gas supply for two fertilizer companies including Pak Arab and Fauji Fertilizer Bin Qasim Limited (FFBQL) for boosting domestic urea production during the winter season.
Finance and Revenue Minister Shaukat Tarin chaired the committee meeting and reviewed urea fertilizer demand for the Rabi crop.
In the meeting, the Ministry of Industries and Production presented a summary regarding the provision of gas.
Later, it was decided that a provision of 58 mmcfd gas to Pak Arab and 63 mmcfd gas to FFBQL is ensured to meet the estimated demand for urea fertilizer through domestic production.
As a result of uninterrupted gas supply, the decision would stabilize prices of urea fertilizer and ensure its smooth supply throughout the country during Rabi this season.
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The provision would allow FFBQL to produce an additional 155,000 tons of urea, whereas the additional supply to Pak Arab, currently working at 80 percent capacity, would take the company to full capacity.
Moreover, ECC also gave orders to immediately issue an import tender to get quotations for the import of 100,000 tons of urea.
Pak-Arab Fertilizer is capable of producing 300 tons of urea per day while Fauji Fertilizer can produce 1,670 tons.
The manufactures said that if cheap gas is supplied to the fertilizer factories in Pakistan, then the required demand which is 7 million tons per annum can be easily achieved.
On the other hand, ECC also approved an allocation of Rs 2 billion as a single line budget for Pakistan Software Export Board (PSEB) to strengthen IT sector exports of Pakistan.
Moreover, the ECC also approved the allocation of Rs 4 billion to PSEB for disbursing cash rewards for boosting IT exports and encouraging documentation of exporters/exports.