A premier Cabinet panel has opted domestic production over imports to meet the estimated 300 MT Kharif shortfall of urea.
By Muhammad Ali.
ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has ordered domestic production of urea instead of imports to meet the projected 300,000 metric tons urea fertiliser shortfall.
On the face of it, the move should substitute imports (read: save foreign exchange spending) and create jobs, contributing precious positive momentum in the times of economic downturn.
At its meeting chaired by Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar Wednesday, the ECC struck down the alternative approach to meeting the shortfall: Urgently importing 300,000 MT urea fertiliser.
It directed the Petroleum Division to supply indigenous gas to both plants at SNGPL network, i.e., Fatima Fertiliser (Shiekhupura Plant) and Agritech (Mianwali) immediately. Bringing these plants online is expected to help bridge the gap between demand and supply of Urea fertiliser for Kharif season 2023.
The ECC was informed that Ministry of National Food Security & Research estimated the demand for urea fertiliser to the tune of 3.2 million tons against estimated production of 2.9 million tons, indicating that the possible shortfall was standing around 300,000 metric tons for Kharif season 2023.
The Ministry of National Food Security & Research recommended two proposals to the ECC including SNGPL based fertiliser plants i.e., Fatima Fertiliser (Sheikhupura plant) and Agritech may be operated immediately or import of 300,000 MT of Urea fertiliser may be completed by May 2023.
The ECC was told that in 2022, Petroleum Division was directed to shift the SNGPL based plants to indigenous gas by September 30, 2022. However, these plants have not been provisioned with indigenous gas up until now.
Considering the summary by NFS&R, the ECC recommended that both plants may be operated immediately. It assigned the task to former Prime Minister Shahid Khaqan Abbasi (MNA) for putting the proposals before the ECC for a decision.
The official announcement made after the ECC meeting said that the ECC considered and deliberated on the summary submitted by Ministry of Industries and Production on Urea Fertiliser requirement for Kharif 2023.
The Ministry presented details on the demand, production, and domestic production gap of urea fertiliser in the country for Kharif 2023 season. Setting aside the option of importing the Urea fertiliser, the ECC decided and directed Petroleum Division to supply indigenous gas to urea fertiliser plants till May 31, 2023 to meet the urea requirement in the country for Kharif 2023.
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