Topline Pakistan Research has published an important report on the sales of fertilizers in Pakistan, specifically focusing on urea. In August 2025, urea sales are projected to increase by 46% year-on-year (YoY) and 34% month-on-month (MoM), reaching 816,000 tons. This growth is attributed to sustained high discounts offered by select manufacturers during the month.
Engro Fertilizers (EFERT) continued to provide an average discount of RS269 per bag, although a portion of this discount was rolled back at the beginning of September 2025. We believe this push, supported by incentives, likely led to pre-buying by some dealers in August 2025. This will boost total urea offtake to an estimated 3.77 million tons, marking a 10% decline YoY compared to 4.21 million tons in 8M2024, primarily due to weak farm economics. The closing inventory of urea is expected to be around 1.06 million tons in August 2025, down from 1.23 million tons in July 2025.
By company, Engro Fertilizers (EFERT) holds the highest inventory at 493,000 tons, followed by Fauji Fertilizer Company (FFC) with 272,000 tons, and FATIMA with 228,000 tons. Among these companies, EFERT is anticipated to see a significant increase of 71% YoY in urea sales, reaching 278,000 tons in August 2025. FATIMA is expected to record urea sales of 173,000 tons, up 32% YoY, while FFC is projected to achieve sales of 323,000 tons, an increase of 29% YoY in August 2025.
Overall, total DAP (Diammonium Phosphate) sales in August 2025 are anticipated to reach 125,000 tons, reflecting a 41% increase YoY and a 17% rise MoM. For 8M2025, total DAP offtake is expected to be 687,000 tons, down 14% YoY. Company-wise, FFC and EFERT are likely to record sales of 107,000 tons and 7,000 tons, respectively, with others accounting for 11,000 tons in August 2025.
The closing inventory of DAP is expected to be around 311,000 tons in August 2025, compared to 312,000 tons in June 2025 and 232,000 tons in August 2024.
**Outlook:** We expect urea inventory to remain elevated due to recent floods, which may impact future sales dynamics.
