CCP recommends overhaul of Fertilizer Policy

MG News | August 05, 2025 at 05:27 PM GMT+05:00
August 5, 2025 (MLN): Revising the outdated Fertilizer Policy 2001, ensuring fair access to natural gas and LNG imports at weighted average cost are among the key reforms proposed by the Competition Commission of Pakistan (CCP) in its draft Competition Assessment Study of the Fertilizer Industry.
The report also suggests introducing incentives for energy
efficiency and environmental sustainability.
The report also calls for tighter monitoring of urea supply
to prevent artificial shortages and black marketing, greater coordination among
government departments, and enforcement actions under the Competition Act,
2010, where violations are suspected.
The CCP’s study highlighted structural, regulatory, and
strategic barriers constraining competition, including high capital costs for
new plants, reliance on natural gas, discriminatory gas pricing, and outdated
policies.
It also pointed to black marketing of imported urea,
hoarding of local urea, inadequate buffer stocks, and alleged anti-competitive
practices by dealers and manufacturers.
Pakistan’s fertilizer plants have an annual capacity of 9.4
million tonnes, with July–March FY2024 production at 7.1 million tonnes, up
16.6% from last year.
Fertilizer contributes 30–50% to crop yields, with wheat
accounting for about half of total usage.
The draft report is available on the CCP website, with
stakeholders and the public invited to submit comments within 15 days.
The Commission said it will continue stakeholder engagement
to support pro-competition reforms in line with
international best practices.
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