Islamabad July 30 2022: The Economic Coordination Committee (ECC) of the Cabinet on Thursday approved the proposal to shift Fatima Fertilizer ( Sheikhupura Plant) and Agritech to indigenous gas supplies.
The Ministry of Industries and Production submitted a summary on issues faced by Fatima Fertilizer ( Sheikhupura Plant) and Agritech.
Both the SNGPL based plants are operated by provisioning of RLNG on cost sharing basis. Gas rate for operation of these plants is worked out on the basis of Variable Contribution Margin (VCM).
Due to price increase in fuel prices and other factors, both plants have approached M/o I&P for revision of VCM and capping of GST at the price paid by the plants.
The ECC after discussion approved the proposal to ensure compliance with the earlier decision of the ECC and the Federal Cabinet of shifting both the plants to indigenous gas.
The ECC further directed Ministries of Petroleum, Finance, National Food Security and Industries & production to work out the gas price/VCM for the Fertilizers. The ECC also decided that Sales tax may be charged on the actual price of the gas being paid by the company.