SC orders grant of subsidy under Kisan Package

ISLAMABAD: The Supreme Court of Pakistan has ordered the Federal Government to grant subsidy, under Kisan Package, to the local manufacturers of fertilizers after confirming their standards.The top court also partially dismissed the appeal of Federal Government against Peshawar High Court (PHC) judgment and maintained that all those local manufacturers wanting to avail of the subsidy must also have their fertilizer products subjected to undergo the test.

The top court’s judge Justice Qazi Faez Isa on Monday announced the judgment over a civil petition filed by federal government against local manufacturer of fertilizer, wherein they had challenged the PHC decision of granting subsidy to locals as well.

The court further noted that the Notifications regarding subsidy on SSP manufactured by using imported rocks, Di-ammonium Phosphate (DAP), Nitrophos (NP) and NPK fertilizers have not been issued under any statute or rule.

“We were also informed that the Government has already disbursed more than half of the designated amount of the subsidy and that it is committed to place the expenditure made on account of the said subsidy before the National Assembly in terms of Article 84 of the Constitution in the month of June 2016,” stated the judgment.

The 11-page judgment further stated that under such circumstances, it may not be appropriate to dilate on the abovementioned issues in the present case wherein these issues had incidentally arisen.

Agritech Limited Company, the Single Super Phosphate (SSP) manufacturer by using locally mined rock containing phosphate, had filed the petition in Peshawar High Court (PHC). The company had stated that by utilizing the locally mined phosphorous rock it was producing SSP fertilizer the phosphatic content whereof was 18 per cent, as has been confirmed by the Pakistan Standards and Quality Control Authority.

It had argued that the company was also entitled to the subsidy provided to other manufacturers and importers of phosphatic fertilizers, including SSP fertilizer. The PHC had ruled in favour of the company.

However, the Federation of Pakistan through Ministry of National Food Security and Research while making Agritech Company respondent challenged the PHC decision.


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