The federal government has reportedly failed to firm up fertiliser import plan despite possessing information on non-availability of fertiliser and massive increase in its prices across the country, sources in the Ministry of Industries and Production (MoI&P) told Business Recorder.
According to official documents, prices of Sona urea and Kisan urea have increased by about 30 percent, whereas prices of Dia Ammonium Phosphate (DAP) and Notro Phosphate have risen by 60 and 51 percent respectively. Saudi Arabia had extended $200 million to Pakistan last year. Out of this Pakistan imported urea costing $100 million, and an equal amount is yet to be utilised.
The Economic Affairs Division (EAD), which inked the agreement with Saudi Fund for Development to procure urea, has yet to finalise the agreement, sources added. "Any further delay in import of urea will have negative impact on wheat production and other crops," said an agriculture expert. Sources said that the Economic Co-ordination Committee (ECC) of the Cabinet in its meeting on December 7, 2010 had approved, in principle, import of 0.225 million tons of urea.
It constituted a committee comprising Deputy Chairman Planning Commission (convenor), Kamal Majidullah, Special Advisor to Prime Minister on Water Resources and Agriculture, Secretaries of Finance, MoI&P and Minfa and a senior representative of State Bank of Pakistan (SBP), and directed it to submit its report within 48 hours to the Chairman of ECC. The ECC also decided that secretariat support will be provided by MoI&P and the meeting of the committee will be held in Islamabad.
The terms of reference of the committee were: (i) to determine the actual requirement of urea for Rabi crop; (ii) to determine methodology and agency for import of urea; (iii) to determine distribution mechanism; (iv) to select best available pricing of urea; and (v) to ensure proper utilisation of Saudi Arabia Basic Industrial Corporation (SABIC) credit facility. The ECC was informed that import of 0.225 million tons of urea was required to meet the gap created due to gas curtailment to fertiliser industry by more than the expected 45 days' winter gas load shedding.
The MoI&P provided the following details to the ECC: (i) Two meetings were held under the chairmanship of the Secretary Finance on 8th and 10th December, 2010; (ii) a combination of SABIC facility utilisation and reduced winter gas load shedding possibilities had been approved by the Finance Minister who is also chairman of the ECC, based on the committee's recommendations for MoI&P and Minfa to work on; (iii) accordingly Secretaries of Minfa, MoI&P held a meeting with the Ministry of Petroleum and Natural Resources. Secretary Petroleum said that reduction of gas load shedding from 45 to 30 days was not likely to take place; and (iv) the MoI&P and Minfa agreed that the entire quantity of 0.225 million tons of urea would be imported by using the SABIC facility and its distribution will be carried out through NFC/ NFML. Funding details of SABIC were received from EAD.
Commerce Ministry has confirmed that TCP is ready to carry out the operation for import of 0.225 million tons urea through SABIC. Earlier, Deputy Chairman Planning Commission wanted to import urea through the private sector but his attempt to oust TCP from this business was not successful.
Comments
Comments are closed.