Pakistan and Saudi Arabia would work out modalities for importing urea fertiliser under Saudi financial facility next week. A delegation comprising representatives of Economic Affairs Division (EAD), Ministry of Finance (MoF) and the Trading Corporation of Pakistan (TCP) will leave for Saudi Arabia in the second week of February.
The team will finalise import of urea fertiliser worth $133 million, a senior official of the Minfal told Business Recorder on Thursday. Saudi Arabia had pledged millions of dollars to absorb the shocks of 2005 devastating quake. Of the facility, Pakistan is using $133 million for importing Saudi fertiliser. Under the facility, Pakistan can import over and above 500,000 tonnes of urea.
Pakistan is importing about 500,000 tonnes of urea annually through the TCP to bridge the demand-supply gap, as the local production of the commodity varies between 4.4 to 4.6 million tonnes against the consumption of 5.4 million tonnes.
The facility, the official hoped, could be extended for the coming years like "oil facility" but the shipments would reach Pakistan before the start of Kharif season.
If the facility between the two governments remained intact for next couple of years, the procurement of urea through public sector would totally be eliminated, the official added.
"The government wants to end its intervention by making the sector totally demand-supply-oriented", the official said. When this mechanism is fully operative, the prices of fertilisers would further decrease, he added.
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