ECC approves 100,000-tonne urea import to avert supply disruption

By Staff Reporter

ISLAMABAD: The Economic Coordination Committee (ECC) has approved the import of 100,000 tonnes of urea to mitigate potential supply disruptions during the upcoming cropping season, a government statement said on Friday.

The move aims to stabilize the market and ensure sufficient fertilizer supply to farmers, Finance Minister Muhammad Aurangzeb said.

The decision comes amid concerns over potential supply disruptions due to uncertainty over gas supply to RLNG-based plants during the Rabi season.

Data presented by the Fertilizer Review Committee on August 1 showed no shortage during the Kharif and Rabi seasons, provided RLNG-based plants remain operational. However, a shortage of 351,000 tonnes is expected if the gas supply to these plants is suspended.

The import proposal follows a tender issued by the Trading Corporation of Pakistan (TCP) for 150,000 tonnes, which received the lowest bid of $358.99 per tonne from M/s West Trade International FZE, UAE. Government-to-government negotiations with Turkmenistan are still underway to explore cheaper options.

The ECC has allowed TCP to continue negotiations for a government-to-government deal. The estimated cost of the 100,000-tonne import is Rs18.489 billion, with a subsidy requirement of around Rs5.865 billion.