Mon. Sep 23rd, 2019

Cabinet ratifies revised GIDC Act

Aftab Ahmed

Islamabad: The cabinet has ratified a revised a revised Gas Infrastructure Development Cess Act to table before parliament for approval that ensures to waive off 50 per cent outstanding against different sectors including industry.

The fertilizer, textile industry and CNG sectors have pocketed over Rs 450 billion from the consumers but they did not deposit to the national exchequer. Now, PTI government had waived off 50 per cent outstanding and rate of cess would be reduced by 50 per cent.

The discussion took place regarding Gas Infrastructure Development Cess (GIDC) in a meeting of a high level meeting on fertilizer here on Wednesday. It was brought to the notice of the Adviser that a revised Gas Infrastructure Development Cess Act had been ratified by the Federal Cabinet and may soon be passed by the Parliament. This will help to work out the differences with the fertilizer industry and will also prove fruitful towards revenue generation in the country. As the said matters fall under the purview of Petroleum & Natural resources Divisions, the concerned representative was requested to ensure that all stake holders are on the same page regarding the matter.

The Adviser to Prime Minister on Commerce, textile, Industries & Production and Investment chaired the meeting of Fertilizer Review Committee. Lt. Gen (retd.) Tariq Khan, CEO Fauji Fertilizer Company Limited, Mr. Fawad A. Mukhtar, CEO Fatima Fertilizer Company Limited, Brig. (retd.) Sher Shah, Executive Director Fertilizer Manufacturers of Pakistan Advisory Council (FMPAC), Mr. Muhammad Faisal Muzammil, CEO Agritech Limited also attended the meeting along with other representatives of fertilizer industry. The Adviser was accompanied by Secretary, Ministry of Industries & Production, Chief National Fertilizer Development Centre (NFDC) and Director (Gas), Petroleum and Natural Resources Division.

The Adviser had directed in the earlier meeting that the prices of fertilizer will not be increased until the Budget for fiscal year 2019-20 is passed and the impact on fertilizer industry is worked out in a comprehensive manner. The Adviser inquired regarding the recent reports that fertilizer prices had been increased prior to this meeting, to which the participants responded that the decision had been held off due to the commitment to the Adviser and the price increase had been halted.

The Adviser appreciated this step by the industry and encouraged the prospect of a working relationship between the Ministry and the industry as only this can result in a stable business environment and relief for the general public especially the farmers.

The Adviser assured that efforts will be made to ensure gas supply to Fatimafert Limited and Agritech Limited in order to keep them operational and avoid any possible shortages in the upcoming season. The Adviser ended the meeting on the assurance that the industry shall not increase the price of fertilizer until further discussions. He asserted the fact that relief to farmers and a working relationship with the industry is the Government’s top priority.  

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