AFTER sugar and wheat mafias, now fertilizer industry is reportedly behaving like a cartel to protect its vested interests at the cost of those of the consumers. According to media reports, fertilizer companies on Friday threatened to increase urea prices by 17% or Rs 500 per bag in case the Government tried to recover the gas infrastructure development cess (GIDC) in the light of a judgement of the Supreme Court of Pakistan.
The apex court had ordered last month recovery of outstanding GIDC dues amounting to Rs 523 billion from the industrial and commercial sectors in two years. Fertilizer companies owe over Rs 180 billion to the Government but they have conveyed to the authorities concerned that they will raise prices in case of recovering of the outstanding dues. This is despite the fact that the firms would not do any favour to the Government as they have already realized the amount from the consumers. Though Advisor on Finance Dr Abdul Hafeez Sheikh has reportedly told the fertilizer firms that the issue will be resolved in the light of the verdict of the apex court but he also indicated to extend (undue) support to them in the post-Covid-19 period. This policy of indirect compensation to the industry for the money it might pay to the Government would encourage cartelization by different pressure groups. This happened in the case of wheat flour and sugar the prices of which increased significantly after inquiries pointed out irregularities and corrupt practices by millers in determining prices of these commodities. It is a popular demand to move firmly against profiteers and hoarders to send a clear message to others that there would be no compromise on establishing writ of the state; otherwise there would be no end to blackmailing.
