Govt moves to prevent fertilizer price hike with Rs20 billion subsidy plan

The government is considering a major relief package for the fertilizer sector to protect farmers from a possible increase in fertilizer prices and ensure uninterrupted production across the country.

According to sources, the government is likely to allocate a subsidy of Rs20 billion to help fertilizer manufacturers pay outstanding gas price arrears. The proposed support is aimed at easing the financial burden on fertilizer companies caused by ongoing gas tariff disputes.

Sources said the subsidy would enable fertilizer factories to continue production without disruption, helping maintain a stable supply of urea and other essential fertilizers in the market.

The government is also reportedly reviewing structural reforms in both the energy and fertilizer sectors to address long-term challenges and improve efficiency.

Officials believe that the payment of gas price differentials under the proposed package would facilitate full recovery for the gas utility company, Sui Northern Gas Pipelines Limited (SNGPL), while ensuring that farmers are protected from the impact of rising input costs.

The proposal is expected to be discussed as part of broader efforts to support the agricultural sector and maintain food security.