Punjab seeks supplementary grant to clear urea subsidy arrears

The Punjab Agriculture Department has sought government approval for an additional supplementary grant to settle outstanding urea fertiliser subsidy payments and clear arrears related to the federation's share of the subsidy scheme, official sources said.

According to sources, the department has requested the release of funds linked to subsidy-sharing arrangements between the federal and provincial governments for the fiscal years 2021-22 and 2022-23.

Punjab has also sought payment of outstanding dues from the federal government under its share of the subsidy mechanism.

Sources said the provincial cabinet had already adjusted more than Rs26.78 billion, including markup calculated up to Aug. 31, 2024, in connection with the subsidy payments.

However, the department has informed the government that an additional grant of Rs5.05 billion is required to cover liabilities accumulated between Sept. 1, 2024 and Feb. 28, 2026.

According to the proposal, the exact amount sought through the supplementary grant is Rs5.046 billion.

Sources said the matter has been placed before the provincial government for consideration and a final decision will be taken in light of directions from Punjab Chief Minister Maryam Nawaz.

Officials said the release of additional funds would help remove hurdles in subsidy payments and facilitate the smooth implementation of agricultural support programmes for farmers across the province.

The move is aimed at ensuring timely settlement of subsidy-related obligations and maintaining support for the agriculture sector, which remains a key contributor to Punjab's economy.