ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet approved the proposal to import 100,000 MT urea aimed at ensuring its sufficient supply in the market as well as stability of prices of fertiliser during the cropping season.
The Federal Minister for Finance and Revenue, Muhammad Aurangzeb, chaired a meeting of the ECC of the Cabinet, here on Friday.
While briefing the body, the Ministry of Industries informed that ECC of the Cabinet vide its decision dated 7th May, 2024 had allowed Trading Corporation of Pakistan (TCP) to import 200,000 MT urea on open tender and G2G basis. This decision was ratified by the Cabinet vide its decision dated 14th May, 2024 and Case No 170/20/2024 dated 11th June 2024.
Govt to import 200,000 tons of urea fertiliser
The TCP issued tender of 150,000 MT which was opened on 29-07-2024 with the lowest bid of M/s West Trade International @ USD 358.99/MT G2G of TCP with Malaysia and Azerbaijan, but the offered rate from them is higher from the tender rate. The negotiations with Turkmenistan to procure urea on G2G basis and efforts regarding getting approval form NDRC, China are still under process.
Estimated cost of import of urea for 157,500 would be PKR 18,372,662,565 (PKR 18.489 billion) as per TCP.
Fertilizer Review Committee (FRC) was convened on 01-08-2024 in which data for Kharif 2024 and Rabi 2024-25 was presented by National Fertilizer Development Center. The data showed no shortage during Kharif and Rabi season, provided RLNG-based plants would remain operational during upcoming Rabi season. If the supply of gas to RLNG-based plants is suspended during Rabi season 2024-25, there would be a shortage of 351,000 MT.
Hence it was decided that in view of the absence of decision for provision of gas to RLNG-based plants during Rabi 2024-25, it is imperative to import 100,000 MT of urea for market/price stabilisation.
The ministry proposed that; 100,000 MT urea may be procured on open tender for market/price stabilisation purpose from lowest bidder i.e. M/s West Trade International FZE. UAE @ USD 358.99/MT, TCP may be allowed to continue G2G negotiations to find other cheaper options for import of Urea, the subsidy requirement of around Rs5.865 billion on import of 100,000 MT urea to be borne either by the federal government or provincial government.
The Cabinet Committee approved the proposal of the Ministry of Industries and Production for import of 100,000 MT urea. This decision is aimed at ensuring sufficient supplies of urea in the market. This will also ensure stability of prices of fertiliser during the cropping season.
The meeting was attended by the Minister for Industries and Production Rana Tanveer Hussain, Minister for Petroleum Musadik Masood Malik, Minister for Power Sardar Awais Ahmad Khan Leghari, Minister for Economic Affairs Ahad Khan Cheema, governor SBP, chairman SECP, deputy chairman Planning Commission, MD PASSCO, chairman TCP, federal secretaries, and other senior officials of the relevant ministries.
Further, a meeting of Fertilizer Review Committee (FRC) was convened on 01-08-2024 in which data for Kharif 2024 and Rabi 2024-25 was presented by National Fertilizer Development Center (NFDC) under Ministry of National Food Security and Research.
The data showed no shortage during Kharif and Rabi season provided RING based plants would remain operational during upcoming Rabi season. If the supply of gas to RLNG based plants is suspended during Rabi season 2024-25, there would be a shortage of 351,000 MT. Hence it was decided that in view of the absence of decision for provision of gas to RLNG based plants during Rabi 2024-25, it is imperative to import 100,000 MT of Urea for market/ price stabilization.
In view of the above following is proposed: a. 100,000 MT Urea may be procured on open tender for market/ price stabilization purpose from lowest bidder i.e. M/s West Trade International FZE. UAE @ USD 358.99 /MT.
The Cabinet Committee approved the proposal of the Ministry of Industries and Production for import of 100,000 MT urea. This decision is aimed at ensuring sufficient supplies of urea in the market. This will also ensure stability of prices of fertiliser during the cropping season.
The meeting was attended by the Minister for Industries and Production Rana Tanveer Hussain, Minister for Petroleum Musadik Masood Malik, Minister for Power Sardar Awais Ahmad Khan Leghari, Minister for Economic Affairs Ahad Khan Cheema, governor SBP, chairman SECP, deputy chairman Planning Commission, MD PASSCO, chairman TCP, federal secretaries, and other senior officials of the relevant ministries.
Copyright Business Recorder, 2024
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