• Policy is fixed for ten years.
• Estimated investment of US$ 1.2 billion in this sector in the next ten years.
• Basic Objectives.

• In next 10 years Pakistan will need additional 2 million tons of fertilizers for local consumption.
• Current production is 4.2 million tons while consumption is 4.4 million tons with estimated 6.3 million tons in next 10 years.
• Policy has three parts :

• Gas subsidy on Fertilizer will end in next five years.
• Pakistan offers gas to the new Plants at 70 cents as compared with 77 cents in many countries.
• Window for obtaining permission for new plants will be open for 4 Yens only.
• For expansion in the existing Plants the gas prices will be the same for feed stock for five years.
• Second hand Plants will be allowed for import for the manufacture of fertilizer.
• Privatization of Gas Companies will have no effect on gas price to new plants as these will be catered from Mari Gas Field.
• Duty free import of rock Phosphate to Phosphatic Fertilizer manufacture and duty-free import of raw material to NPK fertilizer producers.
• Guaranteed minimum price of DAP at $ 250 per tone.
• New investors would enjoy 10% discount on determined prices of Gas for a period of 13 years from the date of Gas Supply Agreement (GSA), in dollar terms.
• The Import of Plant, machinery and equipment not manufactured locally is allowed against customs duty of 10%..
• The charge of catalyst, chemicals lubricants and spares for the first two year operations would also be exempted from all taxes and levies.
• All the fertilizer producers, domestic and foreign, public and private would be treated equally in commercial, fiscal, corporate and contractual matters.
• To encourage local production, 10 percent duty on NPK imports would apply for a period of 5 years only, from the date of commencement of production.
• Selling price of fertilizer shall remain deregulated.
• Tax relief : Initial Depreciation Allowace (IDA) @50% of machinery & equipment cost.

for more information visit : www.pakboi.gov.pk