External broker reports(aggregated public sources), Topline Securities

Topline Securities

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External broker reports(aggregated public sources)

Thematic (Sector/Industry)

Pakistan Chemicals / Thematic (Sector/Industry)

<ul><li>Caretaker government recently increased gas prices for the selected fertilizer companies, in line with the IMF's demand to curb the rising gas circular debt and removal of subsidies.</li><li>As per the Pakistan Institute of Development Economics (PIDE), government spends approximately Rs200bn annually on fertilizer subsidies to maintain lower prices.</li><li>However recent increase in gas prices has created an anomaly among the fertilizer sector as government has increased gas prices for fertilizer manufacturers using gas from the SNGP and SSGC networks, affecting 60% of the industry's production capacity. While the gas tariff for fertilizer companies relying on MARI for gas remains unchanged.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Caretaker government recently increased gas prices for the selected fertilizer companies, in line with the IMF's demand to curb the rising gas circular debt and removal of subsidies.As per the Pakistan Institute of Development Economics (PIDE), government spends approximately Rs200bn annually on fertilizer subsidies to maintain lower prices.However recent increase in gas prices has created an anomaly among the fertilizer sector as government has increased gas prices for fertilizer manufacturers using gas from the SNGP and SSGC networks, affecting 60% of the industry's production capacity. While the gas tariff for fertilizer companies relying on MARI for gas remains unchanged.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Topline Flash Note: Pakistan Fertilizers: Gas prices; Anomaly creates Urea price distortion