Minister for Industries and Production, Ghulam Murtaza Khan Jatoi has reportedly recommended winding up National Fertilizer Corporation (NFC) and National Fertilizer Marketing Limited (NFML), after the country began exporting urea fertilizer due to sufficient LNG availability, well-informed sources told Business Recorder.
In 2014, the Economic Coordination Committee (ECC) of the Cabinet had decided to wind up both organisations for massive corruption in the handling of imported urea and constituted a committee under the chairmanship of the Minister for National Food Security and Research with Secretary Finance as Convener. Members included Secretaries, National Food Security & Research, Commerce, Industries & Production, Chairmen Trading Corporation of Pakistan (TCP) and National Fertilizer Marketing Limited (NFML).
The sources said, Minister for Industries and Production maintains that NFML's urea imported functions should be shifted to Trading Corporation of Pakistan (TCP), an arm of Commerce Ministry. He has also proposed that the assets of both organisations should be liquidated and employees be transferred to other organisations of federal government, adding that NFC colleges be given independent status.
Prime Minister Shahid Khaqan Abbasi in his address to the Senate recently disclosed that the country which was importing 10 million tons of urea per annum is now exporting 7 million tons per annum due to availability of LNG. The committee was charged with holistically reviewing the matter regarding incidentals and financial cost on imported urea and make recommendations within 15 days for consideration of the ECC. The secretariat support was to be provided to the committee by the Finance Division.
The sources said, a committee headed by Minister for National Food Security and Research held threadbare discussion on the issue in 2014. Another committee headed by the then Secretary Finance, Dr Waqar Masood had also recommended that both the organisations should be wound up due to corruption. A number of cases of NFML and NFC are already with the National Accountability Bureau (NAB) and Federal Investigation Agency (FIA). Some of its officials including those who occupied "lucrative" positions remained behind bars and are now on bail.
The sources said NFML has failed to ensure the passage of exceptional level of subsidy (beyond the difference between the local and imported prices) to the farmers. There are also widespread reports of abuses by influential people in the distribution system of the NFML. Minister for Industries and Production was not available for comments. However, an official on condition of anonymity said there is no final decision on the winding up of the two organisations so far.