Islamabad: Unlawful profiteering by companies producing fertilizers has been revealed in the country. According to details, the purpose of government subsidies was to provide cheap fertilizers to farmers, but instead of lowering the cost of fertilizers, companies have been selling them at high prices and earning profits of up to 46%.
The companies have been earning hefty profits by depriving farmers of subsidies, prompting inquiries into price-fixing from the owners of fertilizer plants.
Government agencies keeping an eye on illegal activities, the Competition Commission of Pakistan (CCP) has issued show-cause notices to urea companies and could impose fines of at least 7 billion rupees if the crime is proved.
The maximum limit for penalties is 10% of annual turnover, and after the tribunal hears the case, the Commission will issue orders. According to officials, in 2013, fertilizer companies, including Engro, were fined 8 billion rupees.
Fertilizer companies were given subsidies worth 152 billion rupees annually.