Fertilizer manufacturers Monday demanded a judicious distribution of natural resources to keep all sectors running smoothly to generate the much-needed economic activities and revenue for the national exchequer. “Closing down few industries or giving priority to one sector over the other would not solve our economic issues,” said Shahab Khawaja, the executive director of Fertilizer Manufacturers Pakistan Advisory Council (FMPAC). Hence, he said, the best way forward should be to analyse which sector is creating maximum value addition with natural resources, especially gas.
Khawaja said fertilizer sector was not burning gas to run plants alone but offered maximum value addition by converting raw gas into precious urea grains.
He said not producing urea locally we would not only hurt the interest of poor farmers, who ensure food security to 190 million people of this country, but we have to import urea which is the most expensive form of energy on MMBTU basis, costing around $23 per MMBTU, whereas RFO and LNG would be 30 to 50 percent less expensive than urea on an MMBTU basis. He said due to the worst-ever gas curtailment to the fertilizer sector in three years, the country spent foreign exchange of $ 1.5 billion and also paid a subsidy of around Rs 80 billion on imports of 3.4 million tonnes during 2010-12. The FMPAC chief said Pakistan cannot afford to spend hundreds of millions of dollars on urea import. “We are hopeful that new government would ensure judicious distribution of gas amongst all the sectors of economy,” he said.
Khwaja further said fertilizer plants invested $ 2.3 billion in the last four years, making Pakistan self-sufficient in urea production and with consistent gas supply to these plants, government can ensure timely availability of this key farm input to farmers at cost effective rates and would also help government reduce its fiscal deficits as well as subsidy cost.
He said all other industries had alternative fuel options except the fertilizer sector that used gas as raw material to produce the key farm input.
He warned that if gas remained discontinued to fertilizer plants in 2013 also, Pakistan would have to import one million tonne of urea which could cost the national exchequer $450 million dollars and a subsidy of Rs 21 billion to match imported urea price to domestic urea prices.
1. we are destroying natural gas by using as fuel in vehicles as well as in domestic use. Natural gas should be used on top priority for fertilizers and secondly for power sector._2. First, one group in past government earned cash as commission thru importing fertilizer, now another group in government dont want to miss that chance to earn cash thru commission atleast double of the first group. To remain in politics, cash is necessary by any means._No one in politics in Pakistan is sincere with Pakistan and PAKISTANIS._Remember my words, soon the time come, when these all politicians will be hanged in chowks by the true Pakistanis. __
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