KARACHI:
Recently, Federal Minister Hammad Azhar informed the National Assembly that the daily production of urea fertilisers was at peak levels of 20,000 to 25,000 while the requirement is only 19,000 tons per day. Despite these claims, there remains an acute shortage of urea, and farmers are desperately running from pillar to post. Consequently, the federal government has decided to import about 50,000 tons.
If we believe the government’s claim that there is no shortage of urea in the country, then it is either being smuggled or hoarded by black marketers. The fertiliser industry in Pakistan is pampered with numerous subsidies and ensured uninterrupted supply of gas on priority. The political clout they enjoy can be gauged from their refusal to deposit Gas Infrastructure Development Cess collected from farmers to be deposited with the national exchequer.
Either the state lacks the political will to enforce the writ of laws on the fertiliser industry, or it is patronising criminals involved in smuggling or hoarding. Whatever the cause, the country will be faced with an acute shortage of wheat and other essential agricultural produce to meet basic food requirements. Given these impending shortages, our import bill will further escalate the ever-widening gap between revenues and expenditure. If the state cannot enforce financial discipline, Pakistan may face the danger of compromising its essential nuclear deterrence under pressure from hostile financial institutions.
Ali Malik
Lahore
Published in The Express Tribune, January 16th, 2022.
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