ISLAMABAD: The government conceded to importers and manufacturers demand to provide a subsidy of Rs 6.0 billion on the import of 0.225 million tonnes of urea during the current financial year.
This agreement was reached at a specially convened meeting of fertiliser importers and manufacturers with the government officials on Tuesday, sources said, adding that the importers would submit their import schedules to the government on Wednesday.
Sources stated that gas deficit in the country has forced delay in the commission of a newly built 1.3 million tonnes capacity urea plant by Engro in Sindh. The newly built urea plant is awaiting uninterrupted gas supplies of 80MMCFD for commissioning, which was delayed due to the installation of compressors at the Qadirpur gasfield.
Currently, the installed urea plants have a capacity to produce 4.9 million tonnes per annum. With the commission of 0.5 million tonnes of Fatima Fertiliser and 1.3 million tonnes Engro plant, the country’s urea output will augment to 6.7 million tonnes against an annual demand of 6.4 million tonnes.
