December 23, 2021: The government’s efforts have improved the country's agricultural landscape as it increased earnings of wheat and sugarcane by 59% and 47% respectively in 2021 compared to last year, Imran Ahmed, Chief Financial Officer (CFO), Engro Fertilizers Limited said while addressing the media today.
He said that at the same time, the area under cultivation has reached a record high of 24.3 Mn Ha depicting a significant growth of 2 Mn Ha in the last 2 years. Moreover, better farm practices and increased use of hybrid seeds have led to enhance yields. These factors have contributed to the growth in urea demand in the country which is now forecast to reach 6.3 Mn tons in 2022.
He said that Fertilizer Policy 2022 to enable a move to WACOG and leverage excess urea capacity in the country through exports.
Pakistan, being an agrarian state with a 20% GDP contribution and around 70% of the total population depending on agriculture for its livelihood, the role of the Urea Industry has been of pivotal importance.
Prior to 1980-81, Pakistan imported well over 50% of its annual fertilizer requirements and had been a net importer till 2012.
However, thanks to the Fertilizer Policy of 2001, which led to investment in new plants and an increase in production capacity.
The average local urea demand in Pakistan is around 6.1 MT whereas the nameplate capacity of urea production is now over 7MT. Hence these investments have enabled the country to achieve self-sufficiency in urea production thereby ensuring food security in Pakistan.
Imran commended the efforts of the government of Punjab to effectively implement the subsidy mechanism through Kisan Cards which can go forward serve as a model for the rest of the provinces.
He was of the view that the upcoming Fertilizer Policy should focus on leveraging the excess capacity in the country by allowing the industry to export urea.
The urea sector in Pakistan, he said, has the potential to become a top exporter with an exportable capacity of over 800,000 tons which has the potential to earn over USD 700 million in foreign exchange.
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