ISLAMABAD: March 16, 2023: All Pakistan Fertilizer Dealers Association (APFDA) has appreciated the federal government decision of providing indigenous gas to the Sui Northern Gas Pipeline Limited (SNGPL)-based fertilizer plants to expedite urea production to meet need for Kharif crops 2023.
Two fertilizer plants — Fatima Fertilizer (Shaikhupura) and Agritech –were shut down due to non-supply of gas from the local resources and it was lowering down local urea production substantially. APFDA had been consistently demanding of the federal government to supply indigenous gas to SNGPL-based fertilizer plants to ensure maximum urea production for its smooth supply to the farmers.
APFDA pattern-in-chief, Mr Ghulam Ahmad , has said the supply of indigenous gas to SNGPL-based fertilizer plants was our long outstanding demand and its acceptance by the federal government was a good news. Mr Ghulam Ahmad said APFDA is thankful to the Industries and Production secretary , Moman Agha , for his consistent support to its demand and finally resolve the issue of indigenous gas to SNGPL-based fertilizer plants.
Mr Ghulam Ahmad added that the government decision to supply indigenous gas to SNGPL-based fertilizer plants will enhance local urea production and save much-needed foreign exchange that otherwise could have spent on import of the fertilizer.
The fertilizer review committee (FRC) in its meeting held on March 9, had strongly recommended to the federal government to supply indigenous gas to SNGPL based fertilizer plants and its recommendations were forwarded to the the Economic Coordination Committee (ECC) for its consideration. The ECC on the recommendations of the FRC had accorded approval to supply indigenous gas to SNGPL based fertilizer plants.
The ECC decision to give indigenous gas to Fatima Fertilizer (Shaikhupura) and Agritech will enhance urea production locally and plug in the gap of 0.3 million metric tons for Kharif season 2023. The ministry of National Food Security and Research (MNFS&R) had predicted 3.2 million metric tons urea for upcoming Kharif season which is 0.3 million metric tons higher than the local production of urea.
MNFS&R had put two options before the authorities i.e either import 0.3 million metric tons urea and spend millions of dollars on its import or give indigenous gas to those fertilizer plants which were shut down due to non-supply of gas for long. The authorities after threadbare discussion decided to opt for the second option to supply indigenous gas to SNGPL-based fertilizer plants and produce extra urea to meet its local demand in Kharif season 2023.