Entrepreneurs criticized gas subsidies for fertilizer plants
Lahore: The business community on Sunday criticizes the government for its decision to provide gas at subsidized tariffs for two mega gasification of gas natural gas (RLNG) – fertilizer plant, and call it an offer to satisfy the interests of large entrepreneurs and capitalists. ,
“Another decision taken by the PTI Government to support the personal interests of large entrepreneurs and capitalist cronies, who have taken over the cabinet,“
regretted a industrialist.
Entrepreneurs criticized gas
In his meeting on Saturday, the Economic Coordination Committee has decided to provide gas at RS756 per million thermal units of Britain (MMBTU) to two mega-based fertilizer factories for three months (July to September). The decision will cost the Government costs Rs1 billion. The government claims that this subsidy will help ensure sufficient urea in this country.
The source said that there was no urea shortage in this country and would double the safety stock needed even if the request rebounded to 5.8 million tons. Local production can match demand estimates and there is already a year inventory starting 0.4 million tons.
“The government misleads the public by using the average old oil price for subsidy calculations. Actual subsidies will be higher because the price of crude oil which is actually increasing. The decision will also produce a revivalary flow of RS6BN ($ 36 million),” another source said. “June inventory of 0.43 million tons is higher by 200 percent compared to the usual level at this time this year,” he added.
He questioned how the economy could provide this great subsidy and waste resources when it was under pressure from the International Monetary Fund, and Covid-19 had destroyed the economy. “The government spends RS1BN for political advantages and pleases its cronies than to use money to fight a pandemic. Where are the many responsibilities mentioned?” He asked.