The Pakistan urea industry can earn export revenues of $400-500 million by exporting fertilizer in a year if the urea industry is deregulated. This notion was shared by ENGRO Fertilizers Chief Financial Officer (CFO) Imran Ahmed while talking with local media.
The industry has foregone at least Rs500bn in its revenues in the last ten years by selling urea to growers at highly discounted rates compared with the international prices.
Currently, the producers are getting a subsidy of Rs842 per mmbtu on gas. Still, they say they are competitive even at the current LNG prices if deregulated and allowed to charge import parity prices for their urea.
`Currently, the fertilizer industry provides urea at a significant discount of Rs5000/50kg bag compared to imported fertilizer. He contends that the government can earn higher revenues and reduce the country’s fiscal imbalance by deregulating the sector and introducing WACOG for all manufacturers, including indigenous gas and imported RLNG-based plants.
Courtesy – Dawn