The federal government is expected to introduce a Rs. 20 billion support package for the fertilizer industry in the upcoming budget as part of efforts to strengthen the agricultural sector and maintain market stability.
The proposed allocation will primarily be used to address outstanding gas-related dues, providing relief to fertilizer manufacturers facing increasing operational costs.
Officials believe the measure will help companies continue production without major disruptions and ensure a consistent supply of key agricultural inputs.
A stable fertilizer supply is considered crucial for farmers, particularly ahead of upcoming crop seasons.
By supporting the industry, the government hopes to avoid significant price increases that could raise production expenses for growers and eventually affect food prices for consumers.
Industry stakeholders view the initiative as an important step toward protecting agricultural productivity and supporting food security.
At the same time, policymakers are reviewing broader measures related to gas pricing, industrial energy costs, and circular debt challenges to improve the long-term sustainability of critical sectors.
The proposed subsidy reflects the government’s focus on balancing industrial support with the needs of farmers and consumers while working toward greater economic stability.