ECC directs supply of local gas to two fertiliser plants

ISLAMABAD: While rejecting the import of 0.3 million tons of urea fertilizer, the Economic Coordination Committee (ECC) of the Cabinet on Wednesday directed the Petroleum Division to supply indigenous gas to both plants in the SNGPL network i.e. Fatima Fertilizer (Sheikhupura Plant) and Agritech (Mianwali), immediately for bridging the gap between demand and supply of urea fertilizer for the Kharif season 2023.

Federal Minister for Finance and Revenue Senator Ishaq Dar presided over the ECC meeting here on Wednesday. The ECC was informed that the Ministry of National Food Security & Research estimated the demand for urea fertilizer to the tune of 3.2 million tons against an estimated production of 2.9 million tons, indicating that the possible shortfall was standing at around 0.3 million tons for the Kharif season 2023.

The Ministry of National Food Security & Research recommended two proposals to the ECC, including SNGPL-based fertilizer plants, i.e. Fatima Fertilizer (Sheikhupura plant) and Agritech may be operated immediately or import of 300,000 MT of urea fertilizer may be completed by May 2023.

The ECC was told that last year in 2022, the Petroleum Division was directed to shift the SNGPL-based plants to indigenous gas by September 30, 2022. However, the plants had not been provisioned with indigenous gas till date. Now it is recommended that both the plants may be operated immediately.

The ECC, while considering a summary by M/o NFS&R, had assigned the task to former prime minister Shahid Khaqan Abbasi to put proposals before the ECC for a decision.