close
Money Matters

A phosphate strategy for Pakistan

By Engr. Hussain Ahmad Siddiqui
31 March, 2025

Pakistan is endowed with rich and vast deposits of many minerals and metals. However, for a variety of reasons, the focus remains on exploration, mining, and developing reserves for precious minerals such as coal, copper and gold. Meanwhile, other minerals of industrial and commercial value have been sidelined in the overall development plan for the mineral sector.

MINERALS

A phosphate strategy for Pakistan

Pakistan is endowed with rich and vast deposits of many minerals and metals. However, for a variety of reasons, the focus remains on exploration, mining, and developing reserves for precious minerals such as coal, copper and gold. Meanwhile, other minerals of industrial and commercial value have been sidelined in the overall development plan for the mineral sector.

A case in point is the phosphate reserves -- an important non-metallic mineral and a fundamental raw material for fertilizers. Phosphate rock or phosphorite, used as an organic fertilizer in its raw form, is also a key additive in fertilizers and phosphate-based chemicals. Phosphorus is essential for plant growth, contributing to root development, photosynthesis, flowering, and fruit formation. It is a critical component in agricultural fertilizers, such as superphosphates, ammonium phosphates and nitro phosphates. It is also used in the production of acids, detergents, livestock and poultry feeds, and numerous other commercial and industrial products.

Pakistan possesses significant phosphate rock reserves, estimated at 26 million tons, spread over an area of 20 kilometres. These deposits, primarily located in the Hazara region of Khyber Pakhtunkhwa, are economically and commercially exploitable. The key deposits are found in areas such as Kakul, Tarnawai and Lagarban. These reserves, discovered in 1969, are categorised into two main types: dolomitic phosphorite, approximately 14 million tons, containing low to medium phosphorus pentoxide content, and siliceous phosphorite, around 12 million tons, with medium to high content.

Additional geological studies have identified deposits in Paswal Mian, Banseri and Shahkot in the Abbottabad district. These newly discovered reserves are estimated at 4.24 million metric tons, with an average phosphorus pentoxide content of 20 per cent. The inferred reserves of phosphate rock in the country could potentially be as high as 200 million tons. However, given the absence of recent reports or projects related to phosphate exploration, it appears that the government is not currently prioritising the development of these deposits.

Despite these substantial reserves, Pakistan's phosphate rock production only commenced in 1985 with the establishment of the Kakul Phosphate Mines project at a cost of $10 million. The project aimed to produce 90,000 tons of beneficiated and granulated phosphate rock per annum, with the mine expected to sustain production for thirty years. However, production never exceeded 28,000 tons in any given year, primarily due to high extraction costs and considerable variations in output.

The pricing policies of fertilizer companies -- despite both seller and buyer being public-sector enterprises at the time -- further hampered the project's viability. Over ten years of operation, the mine supplied only about 250,000 tons of phosphate to fertilizer factories. These supplies were made to producers of single-super phosphate (SSP).

Following the abandonment of the Kakul Mines, phosphate rock production from Kakul by private miners remained limited, amounting to only 5,108 tons in 2000. This limited domestic production has led to a significant reliance on imports to meet the country’s demand for phosphate-based fertilizers. Some private miners continue to supply phosphate rock to small units that blend locally produced phosphate with imported materials for fertilizer production.

Given the economic and social benefits of developing national phosphate resources, optimising their use for fertilizer production should be a government priority. Enhancing local extraction and processing capabilities could reduce dependence on imports, mitigate supply chain constraints and strengthen the national economy

The Lagarban-Tarnawai deposits, known to be of superior quality with an average phosphorus pentoxide content of 28.5 per cent compared to Kakul deposits, were explored and estimated in 1993, but no further work has been undertaken for their extraction and utilisation. The commercial exploitation of these reserves faces several challenges, including the need for infrastructure development, investment in mining operations, and addressing technical issues related to ore quality.

Currently, Pakistan relies heavily on imports to meet its demand for phosphate rock and phosphoric acid, both essential components in fertilizer production. The country's annual phosphate rock imports stand at approximately 1.8 million tons. The primary supplier is Morocco, accounting for a significant share of these imports, followed by Egypt and Jordan. In 2023, Pakistan imported phosphoric acid worth about $306 million, with Morocco contributing $292 million (95 per cent) of the total import value. Other suppliers included China ($9.61 million), various Asian countries ($2.89 million), Belgium ($496,000), and South Korea ($422,000). These figures highlight Pakistan’s overwhelming dependence on international sources for phosphate materials.

To secure a consistent supply, Fauji Fertilizer Company (FFC) has established a joint venture in Morocco, Pakistan-Morocco Phosphate (PMP), to import phosphate rock and phosphoric acid for its production requirements. The fertilizer industry in Pakistan currently has, among other plants producing different types of fertilizers, one di-ammonium phosphate (DAP) plant, three nitrogen-phosphorus (NP) plants and four SSP plants in the formal sector, which require large quantities of rock phosphate or phosphoric acid for the production of fertilizer.

One significant challenge in utilising Pakistan’s phosphate rock deposits is the presence of impurities such as heavy metals (such as cadmium) and radioactive elements (for example, uranium and thorium). There is no commercial method in Pakistan to completely remove these pollutants during fertilizer production. However, this is not an insurmountable obstacle. Several technologies have been developed internationally for impurity removal, including flotation-flocculation, solvent extraction, ion exchange, precipitation methods and calcination. Implementing one or more of these technologies could enhance the quality and grade of domestically mined phosphate rock, making it more competitive with imported phosphate.

Given the economic and social benefits of developing national phosphate resources, optimising their use for fertilizer production should be a government priority. Enhancing local extraction and processing capabilities could reduce dependence on imports, mitigate supply chain constraints and strengthen the national economy. Recognising the importance of this mineral for industrialisation, import substitution, self-reliance and socio-economic development, the government must address the challenges hindering the large-scale development of Pakistan’s phosphate reserves. A comprehensive strategy involving investment incentives, infrastructure development, technological advancements, and regulatory support could pave the way for a self-sustaining and robust phosphate industry in Pakistan.


The writer is a retired chairman of the State Engineering Corporation and former member (PT) of the Pakistan Nuclear Regulatory Authority.