The Economic Coordination Committee (ECC) has put on hold a decision on import of 200,000 tons of urea until final estimates of fertiliser requirement are shared for the current crop sowing season.
Sources told The Express Tribune that the matter was tabled in a recent meeting of the ECC. The committee directed the Ministry of Industries and Production to come up with estimates of urea demand and supply situation and its stocks in the country.
It had been informed to policymakers that Fauji Fertiliser Bin Qasim Limited (FFBL) had faced a production loss of 22,000 tons because of gas pressure issues.
During the meeting, it was revealed that the Ministry of National Food Security and Research had earlier projected annual urea offtake at 6.508 million tons. But later it revised the estimate due to increase in demand by 86,000 tons in March 2023.
The food ministry projected an import requirement of 800,000 tons, if both Sui Northern Gas Pipelines Limited (SNGPL)-based fertiliser plants were shut down by May 31, 2023.
Earlier, in order to assess the situation, the Fertiliser Review Committee met on April 6, 2023 and endorsed the food ministry’s proposal for import of 200,000 tons of urea by May 15, 2023.
It recommended that Fatima Fertiliser (Sheikhupura plant) and Agritech should be provided gas without interruption beyond May 31 and till December 2023.
It asked the Petroleum Division to ensure that maximum gas pressure was maintained for optimum urea production by all fertiliser plants.
Based on the fertiliser committee’s recommendations, the Ministry of Industries proposed that SNGPL-based plants, ie Fatima Fertiliser (Sheikhupura) and Agritech, may be allowed to operate beyond May 31 2023 till December 31, 2023.
It recommended that the Trading Corporation of Pakistan (TCP) may be allowed to initiate process for import of 200,000 tons of urea on a government-to-government (G2G) basis and through an international tender.
In line with the proposals, the Ministry of Commerce suggested that TCP may be allowed to invoke Rule 5 of the Public Procurement Regulatory Authority (PPRA) Rules for G2G procurement and be granted exemption from Rules 8, 9, 13, 35, 38 and 40 for floating international tenders.
Published in The Express Tribune, June 3rd, 2023.
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