Fertilizer Bag Prices Could Surge Up to Rs700 Under Proposed GIDC Amendment

The price of fertilizer bags in Pakistan could increase by up to Rs700 due to a proposed amendment to the Gas Infrastructure Development Cess (GIDC) law. The Natural Gas Development Surcharge Amendment Bill and the Gas Infrastructure Development Cess Amendment Bill were being discussed at the Senate Standing Committee on Petroleum, chaired by Syed Mustafa Mahmood.

PPP leader Syed Naveed Qamar opposed the bills, saying his party had decided not to participate in any legislation. He argued that the burden of the increased cost would ultimately fall on the public and that fertilizer prices should be determined by the market, not fixed by the government.

The proposed amendment aims to expand the scope of where the collected cess can be utilized within the gas sector, potentially covering infrastructure costs for other sectors as well. The representatives from the Fertilizer Manufacturers Advisory Council argued that the cost of the infrastructure would have to be passed on, but also complained about the poor quality of gas being supplied to the fertilizer sector.