Web Desk
The Ministry of Industries and Production (MoI&P) has presented a summary to the Economic Coordination Committee (ECC) outlining various measures to meet the fertilizer requirements for the upcoming Kharif Season. The proposed actions include importing 0.2 million tons of urea and extending gas supply to SNGPL-based urea manufacturers until December 31, 2023.
According to a report in Business Recorder, these recommendations were initially put forth by the Ministry of National Food Security and Research. The ministry further suggested that the fertilizers should arrive at the ports no later than mid-May.
Previously, the food ministry projected the annual off-take of urea fertilizer at 6.508 million metric tons (MMT). However, in a letter dated April 3, 2023, it revised the annual estimates due to a significant offtake in March of 86,000 metric tons (MT) and a production loss of 22,000 MT by Fauji Fertiliser Bin Qasim Limited (FFBL) caused by gas-related issues.
In the event of Fatima Fertilizer (Sheikhupura) and Agritech (Mianwali) plants shutting down as scheduled by the end of the month, the food ministry projected imports of 800,000 MT.
The Fertilizer Review Committee (FRC) convened a meeting on April 6 to review the matter and endorsed the proposals made by the food ministry. These included importing 200,000 MT of urea, extending gas supply to Fatima Fertilizer and Agritech until December 2023, and ensuring adequate gas pressures to optimize urea production.
According to reports, the Ministry of Commerce has also provided input, recommending the invocation of PPRA rule 5 for government-to-government (G2G) procurement and exempting the Trading Corporation of Pakistan (TCP) from rules governing international tenders.
The ministry proposed allowing fertilizer to arrive until the end of June 2023, designating the National Fertilizer Marketing Limited (NFML) as the recipient, directing the Finance Division to allocate Cash Credit Limit (CCL), arranging for Technical Supplementary Grants (TSG) to repay the loan and avoid interest charges, and allocating the federal share for the TCP in the Commerce Ministry’s demand to avoid markup.
Meanwhile, the Power Division has agreed to redirect gas from Guddu Thermal Power Stations until August 31, while the Finance Division has endorsed the proposal without requiring subsidies. MoI&P will consult with provinces to lift the imported urea at full cost and ensure that the quantity of imported urea aligns with the agreed-upon amounts by the provinces.
MoI&P will hold meetings with provinces and the federal Ministries of Finance, Food Security & Research, and Commerce before seeking final approval from the ECC.
