Taking notice of the report over missing of 50 per cent of total urea bags distributed among the ghost feriliser dealers in Punjab and Rs35 billion scam in which 78 thousand Urea bags were smuggled to Afghanistan, National Assembly Standing Committee on Commerce directed ministry of interior to allow Federal Investigation Agency (FIA) to launch investigation. NA committee held under chairmanship of Engineer Khurram Dastagir Khan on Thursday was informed that 585 fake permits for sale and purchase of federalises were issued by Senior Federal Minister for Industries and Defense Production Chaudhary Pervaiz Elahi to dealers close to the Chaudrys’ of Gujrat between July and November 2011. Dealers were provided with 68125 MT of ferilisers and they could not be identified so far.
The representative from ministry of industry Qudrat Ullah told committee members that there were total 2200 urea dealers in Punjab that includes 600 new urea dealers who have been issued permits in last five months. Committee chairman while courting Punjab food department report stated that there were 2093 feriliser dealers around Punjab out of which only 1595 were identified.
While taking notice of the report over missing of 50 per cent of total urea bags distributed among fake urea dealers in Punjab led to shortage of urea availability in the local market that increases problems for farmers. The dealers after buying ferilisers at rate of Rs1350 per bag sold them in the domestic market at a high rate of Rs1850 per bag.
The committee expressed annoyance over the issue and ordered investigation. Committee Chairman Engineer Khurram Dastgir Khan in his remarks said that the issue was a clear example of government’s inability and corruption and it cannot be neglected at any cost.
The committee also directed Trading Corporation of Pakistan (TCP) to manage buffer stocks of Raw Sugar, urea, wheat and cotton in order to curb hoarding and black marketing in the country. Chairman TCP, Tahir Raza Naqvi said TCP acts on the specific directions of the Economic Coordination Committee (ECC) to import procure and sell select essential commodities – urea, wheat, rice and sugar. All imports, local purchases and sales undertaken by TCP are carried out strictly in accordance with Pakistan Procurement Regulatory Authority (PPRA) Rules 2004. The goods are invariably subject to quality inspection by Pakistan Standards and Quality Control Authority, he added.
Only pre-qualified bidders can participate in TCP’s tenders, process of pre-qualification, however, remains open at all times to provide a level playing field to the market players representatives of the ministries of finance, commerce and industries are included in the tender opening and award committees to ensure transparency and compliance to the tender terms.
Shipment is allowed only after the goods have been duly inspected and cleared by a world class Pre-Shipment Inspection Agency appointed by TCP. A total of 1,104,605 MT of sugar arrived in 2010-2011 at an average landed cost of Rs59/- per kg. A quantity of 985,591 MT has so far been delivered to provinces.Regarding the import of sugar, TCP Chairman said a total of 1,104,605 MT of sugar arrived in 2010-11 at the average landed cost of Rs59 per kg. A quantity of 985,591 MT has so far been delivered to provinces, Utility Stores Corporation (USC), Canteen Stores Departments (CSDs), Pakistan Navy and Pakistan Army, as per government directives, leaving a balance 117,078 MT in hand with TCP.
On the issue of urea import committee was briefed that so far TCP has imported 3,532,255 MT of urea following the ECC directives since 2008. A quantity of 759,947 ‘MT was imported through SABIC against the credit facility extended by Saudi Fund for Development (SFD) while the rest i.e. 2,772,308 MT has been imported through international tenders in accordance with PPRA Rules, 2004.
Entire quantity was lifted by National Feriliser Marketing Limited (NFML) at a price of Rs10,760 PMT, fixed by the defunct Ministry of Food and Agriculture (MINFA). The difference between the price paid by NFML and the landed cost was picked up by the finance division.
Against the backdrop of gas shortage and the consequent shortfall in domestic production of feriliser in the country, TCP was directed on October 20, 2011 by the ECC to import 700,000 MT urea. A gallop tender was issued on October 21, 2011. The tender was opened on October 28, 2011 and a quantity of 260,000 MT was awarded to five different pre-qualified supplies another gallop tender was issued on Monday, November 01, 2011. The tender opened on November 10, 2011 and a quantity of 440,000 MT was awarded amongst four different pre-qualified supplies.
