Growth opportunity

The ‘Federation of Pakistan Chamber of Commerce &     Industry’ (FPCCI) has recommended that the          government should allow fertilizer producers to export their surplus stock. The chairman of the FPCCI’s standing committee has disclosed that Pakistan’s urea plants are overproducing urea by 0.6 million tons. This surplus can be exported to an international market for Pakistani fertilizers. Carrying forward last year’s stock, the country can export 1.2 million tons of urea. Based on the current market price of urea — $190-220/ton – the export can generate an income of $220 million. The amount will be good enough to stabilise the country’s currently diminishing exports.

An effective mechanism should be devised to enable the export of urea without disturbing the local market — where the government should ensure the availability of urea at subsidised rates for domestic consumers. From 1983 to 1986 Pakistan was successfully exporting urea, maintaining domestic market at subsidised rates and earning foreign income through exports. Once again, there is a similar opportunity for the sector to strategically balance the production.       The authorities should take some favourable decisions to help the industry.

Muhammad Sagheer

Islamabad