Price hike looms as provinces reject Rs32bn urea subsidy burden

Finance ministry also declines to share cost, citing IMF restrictions PM-led meeting decides to merge prices of imported and local urea, bill the extra cost to farmers ISLAMABAD: With the headline inflation already touching 30 per cent, the country braces for a fertiliser price hike of about 5pc as provinces refuse to share a Rs32 billion burden for imported urea. The Ministry of Finance also declined to share the subsidy burden, citing restrictions imposed under the IMF’s $3bn standby arrangement. As a result, caretaker Prime Minister Anwaarul Haq Kakar had to withdraw centre’s decisions after the provincial chief ministers, except Sindh, declined at a recent meeting to finance their share of the subsidy.