The Economic Co-ordination Committee of the Cabinet (ECC) has asked the Trading Corporation of Pakistan (TCP) to import 0.225 million tons of urea, on urgent basis, to meet local shortage. "TCP has been given the task to import urea as private sector has clearly refused to import urea for government and import under Saudi Arabia Basic Industry Corporation (SABIC) agreement has been delayed", sources told Business Recorder.
Following the directive of the ECC the TCP will issue first urea import tender on Monday to invite bids from international suppliers, they said, adding that the ECC has asked TCP to make all arrangement for immediate import of urea and to ensure first consignment arrival by mid-February.
As per directives of the ECC, 50 percent of urea will be imported via Gwadar port, while the remaining quantity will be for Port Bin Qasim, they said.
Sources said that TCP has issued an international Gallop tender under clause 42d (III) of PPRA rules 2044 for immediate import of urea from pre-qualified foreign urea exporters/suppliers of TCP for supply of 0.225 million tons with ten percent more or less seller''s option in bulk through import from world-wide sources on C&F, Port Bin Qasim and Gwadar port.
In the tender, however, TCP has strictly asked suppliers for supply of urea in accordance with the standard and specifications as prescribed by Pakistan Standard & Quality Control Authority (PSQCA) for Urea and the conditions of the import policy under 2010.
According to TCP, tender will be released on Monday. Interested pre-qualified urea suppliers, who can supply urea from world-wide origins, may submit their bids in sealed envelopes at TCP offices till February 7, 2011, and bids will be opened on the same day after half hour.
"TCP is all set to import 0.225 million tons urea from international market, and we are expecting that first urea consignment will reach Karachi in third week of February as tender will be opened on February 7, 2011, and needs five days for bank guarantee; and a few more days will be required for loading and shipment," said a TCP official.
"We are closely monitoring the international urea market and arrangements for immediate import of the commodity have almost been completed", he said.
Talking about the price trend in international market he said that presently urea prices in the world market are at high level and no decline is expected in near future. Urea price in the world market is ranging between 380 and 400 dollars per ton and its C&F cost will be about $425-430 per ton.
TCP will make all efforts to import urea at cheapest rate despite the fact that prices in the international market are at peak level, he said.
"Once again, import of urea through TCP proves that TCP can manage import of any commodity easily and satisfactorily" he added.