ISLAMABAD, June 6: The government is likely to announce a Rs20 per 40-kilogramme reduction in the price of fertilizer in the budget 2003-04, an official told dawn on Friday.

The official said that Minister for Industries and Production Liaquat Ali Jatoi had held a meeting with Finance Minister Shaukat Aziz on Friday evening for the inclusion of his sector’s budgetary proposals in the budget speech.

Sources said that the finance minister had assured the industries minister in this regard, adding that the budgetary proposals, related to reduction in the customs duty of the raw material of about 200 items and reduction in agriculture input, would be part of the budget 2003-04.

They sources said that a Rs20 per bag reduction in fertilizer price had already been approved by a ministerial committee, led by Liaquat Jatoi and comprising the ministers of finance, commerce and privatisation but the announcement was withheld till the announcement of the federal budget.

Referring to the reduction in fertilizer price, they said that it would be shared on a 50:50 basis by the government and the manufacturers. On its part, the government would make certain adjustments in the duty structure, providing a cushion of Rs10 per bag.

Meanwhile, officials said that a 10 per cent withholding tax on the telecommunication pay cards would be withdrawn to expand the teledensity, reducing the prices of cards of all denominations by around Rs50 per piece.