AKD Research has released an important report on the Pakistan Fertilizer industry and forecast future demands for fertilizer in the coming Rabi season.

As Pakistan approaches the Rabi season, the fertilizer market is experiencing a notable uptick in offtake, fueled by government incentives, discount offerings, and a reduction in channel inventory. In September 2025, the figures illustrated a robust recovery, particularly in nitrogen-based nutrients, which have become increasingly vital for farmers preparing for the upcoming season.

Urea and Calcium Ammonium Nitrate (CAN) witnessed impressive growth, with offtakes rising by 17% and 59% year-on-year, respectively. However, not all segments have fared as well; sales of Diammonium Phosphate (DAP) have declined by 27% compared to the previous year, raising concerns about nutrient balance in the market.

Analysts anticipate that urea sales will continue to strengthen in the months ahead as the Rabi season approaches. This optimism is supported by declining prices and improved water availability, alongside a continuing decrease in channel inventory.

Given the stable earnings outlook and attractive dividend yields in the fertilizer sector, analysts recommend maintaining an overweight stance on this market. FFC and ENGROH have been highlighted as preferred picks for investors looking to capitalize on the growth forecast.

As the Rabi season unfolds, the agricultural sector may see revitalized productivity, reflecting the positive impact of enhanced fertilizer offtake on local crop yields.