Thread by @BlueJay84539717

@sulemaniya_ @ZubairKhanPK 1/n: Fauji Fertilizer Company (FFC) receives the majority of its gas from the Mari network, whereas its main private competitor, Engro Fertilizers (EFERT), receives gas from the SNGPL network.

@sulemaniya_ @ZubairKhanPK 2/n: In 2024/2025, FFC was receiving gas at approximately Rs. 580/mmbtu. In contrast, competitors like EFERT faced rates as high as Rs. 1,580/mmbtu for their gas supply.

@sulemaniya_ @ZubairKhanPK 3/n; This creates an immediate, massive cost advantage. In early 2024, because of these lower input costs, FFC was able to price a bag of Urea at Rs. 3,767, while its competitors were forced to charge between Rs. 4,647 and Rs. 5,489 per bag.

@sulemaniya_ @ZubairKhanPK 4/n: This isn't just "efficiency"; it is a structural price floor provided by state-controlled gas allocation.

@sulemaniya_ @ZubairKhanPK 5/n: Under Section 100C of the Income Tax Ordinance (2001), Non-Profit Organizations (NPOs) like the Fauji Foundation itself can receive a 100% tax credit on income from investments and donations.

@sulemaniya_ @ZubairKhanPK 6/n: This allows the parent Foundation to reinvest capital back into its businesses with 0% tax friction at the top level—a luxury private holding companies (which pay inter-corporate dividend taxes) do not have.

@sulemaniya_ @ZubairKhanPK 7/n: When Fauji entities enter new sectors (like the 2025 acquisition of PIA or power projects), they often benefit from "policy continuity guarantees" and specific tax reliefs approved by the government that private consortia struggle to secure.

@sulemaniya_ @ZubairKhanPK 8/n: Because the military manages the Foundation, regulatory bodies (like the Competition Commission of Pakistan) have historically been hesitant to act against price-fixing or monopolistic behavior in the fertilizer and cement sectors.

@sulemaniya_ @ZubairKhanPK 9/n: The "Praetorian" Economic Model. The Pakistan Army acts as the ultimate "guarantor" of the state's economy.

@sulemaniya_ @ZubairKhanPK 10/n: This creates a conflict of interest where the entity that sets the industrial policy (the military-backed government) is the same entity running the largest industrial player (Fauji Foundation).

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