Urea smuggling to Afghanistan: National Assembly panel tells FIA to take action against officials, dealers

National Assembly Standing Committee on Commerce on Thursday directed Federal Investigation Agency to take action against the officials and dealers involved in smuggling of 78,000 urea bags worth Rs 28 billion to Afghanistan. The committee chaired by Khurram Dastgir Khan MNA further directed the Ministry of Interior to complete the process of registration of cases against officials of National Fertiliser Marketing Limited (NFML).
The committee also discussed the controversial deal of purchase of 200,000 tons of sugar from local sugar mills at an exorbitant price and supply of imported urea worth billions of rupees to fake or missing dealers in Punjab province as well as overcharging by dealers of urea.
An official of the FIA informed the committee that while in an enquiry no 14/2010 of FIA CCC Lahore has sought permission for registration of cases against certain officers of NFML, namely, Abdul Ghaffar Regional manager, Hamid Pervaiz DGM, Colonel (Retd) ex-consultant, Khawaja Hamid Shehzad, Khawaja Faisal Shehzad, Khawaja Muhammad Akbar, Khawaja Azhar and other private sector persons regarding alleged receipt of total commission of Rs 390 million from carriage contractor for dumping and smuggling of urea fertiliser from Karachi through Chaman to Afghanistan. Role of store Manager Zaheer Ahmed, Ex-Marketing Officer Fateh Muhammad and Ex-MD NFML, Mian Ijaz will be determined during the investigation. Since, officers of BS-18 and above are involved, Ministry of Interior is being moved for seeking permission for registration of cases accordingly. After hearing the initial FIA response, NA Body directed FIA to start investigation immediately after seeking permission from Interior Ministry and asked Ministry of Interior to allow FIA to investigate the issue without further delay, he added.
The committee also took notice of sale of urea bag at a price ranging between Rs 1800 to Rs 2100 against initial price of Rs 1425 per bag to the farmers. The chairman of the committee observed that a study completed by Punjab Agriculture Department has revealed that there are 68125 fake dealers in Punjab who don't have their outlets and are getting urea bags at Rs 1425 and selling such to farmers at Rs 1800 to Rs 2100. He also asked the official representing NFML to investigate the issue of unknown dealers as well as people getting permits from Ministry of Industry for direct purchase of urea from NFML and report back to committee.
Officials of the NFML informed the committee that they have already started survey and review of the status of the dealers and those dealers who don't have their outlets as mentioned in their documents would be facing cancellation of registration.
On the issue of purchase of 200,000 tons of sugar from local sugar mills on much higher price against market price, the Trading Corporation of Pakistan officials informed the committee that TCP on the directive of ECC had floated tenders for purchase of 200,000 tons of sugar and 27 responsive sugar mills have quoted Rs 65 to Rs 66 per kilogram price against their supplies.
They further informed that TCP has a sufficient stock of sugar around 117,000 tons which would be sufficient for next four months as the Utility Stores Corporation is picking up sugar at 30,000 to 50,000 tons per month. There is no sugar shortage and until fresh sugar from next crop would be available in market, the existing stock would be enough.