ECCoC clears MoNFS&R’s revised summary on two SNGPL-based urea plants

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has reportedly cleared a revised summary of the Ministry of National Food Security and Research (MoNFS&R) regarding the operation of two SNGPL-based urea manufacturing plants—Fatima Fertilizer and Agritech—following a controversy over the approval status of its earlier decision of June 16, 2026, sources in the Petroleum Division told Business Recorder.

The summary was tabled with the approval of the Chair after directions from the Prime Minister, who had asked the Ministry to resubmit the case with complete data and updated inputs.

The revised summary, covering the period from January 1 to June 30, 2026, was presented after incorporating the views of the Petroleum Division.

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The MoNFS&R informed the ECC that urea accounts for nearly 65 percent of total fertilizer consumption in Pakistan, making its uninterrupted availability critical for the agriculture sector.

The country has ten operational urea plants with a combined annual production capacity of about 6.7 million tonnes, which is sufficient to meet domestic demand, provided gas supply remains uninterrupted.

However, two plants—Fatima Fertilizer and Agritech—depend on gas supplied through the SNGPL network and have a combined capacity of around 900,000 tonnes per annum. Due to shortages of indigenous gas, these plants have been operating on RLNG since October 2018, with their operations contingent upon ECC decisions based on national demand-supply requirements.

The Ministry highlighted that since April 2023, both plants have largely remained operational, contributing to the accumulation of buffer stocks exceeding 300,000 tonnes per month. This improved supply position has helped stabilize the domestic market and contributed to a decline in urea prices.

According to official data presented to the ECC, the domestic urea price stood at Rs4,591 per 50 kg bag, compared to Rs4,705 in July 2024, reflecting a decline of 2.4 percent. In contrast, international urea prices have surged by 38.7 percent, with the ex-Karachi price of imported urea reaching Rs8,553 per bag in June 2026.

The MoNFS&R further apprised that for Kharif 2026, total urea availability is estimated at 4.073 million tonnes, comprising 804,000 tonnes of opening stock and 3.269 million tonnes of domestic production. Against this, projected demand stands at around 3.417 million tonnes, ensuring buffer stocks well above 300,000 tonnes during the season.

The two SNGPL-based plants are expected to produce approximately 290,000 tonnes of urea during the first half of 2026, significantly contributing to supply stability and averting potential shortages. These buffer stocks are also expected to support demand during peak consumption months of December 2026 and January 2027, driven by wheat sowing requirements.

The Petroleum Division, whose input was incorporated in the revised summary, did not object to the continuation of gas/RLNG supply to the two plants up to June 30, 2026, under existing arrangements or until the operationalisation of ECC-approved third-party gas access, whichever occurs earlier.

The Ministry further informed that earlier approval for the operation of these plants had been granted till December 31, 2025. Subsequently, the plants continued operations until early March 2026, when RLNG supply disruptions due to import constraints forced temporary shutdowns. Agritech resumed operations on March 12, 2026, followed by Fatima Fertilizer on May 2, 2026.

Despite these interruptions, the plants utilized available gas for urea production. The Ministry emphasized that continuous operation remains essential to maintain buffer stocks and ensure price stability in the domestic market.

During the ECC meeting, it was also noted that the earlier decision taken on June 16, 2026, had not been approved by the Prime Minister for onward submission to the Cabinet for ratification. The Cabinet Division had conveyed specific observations, which were read out during the meeting. The MoNFS&R confirmed that all directives from the Prime Minister’s Office had been duly complied with in the revised submission.

It was further placed on record that while the Special Secretary, Petroleum Division, attended the earlier ECC meeting via Zoom, the Minister for Petroleum was present in person during the latest meeting held on June 24, 2026, where the revised summary was considered.

The development underscores the government’s continued reliance on RLNG-based operations to ensure adequate urea availability, while navigating fiscal constraints, circular debt pressures, and persistent gas supply shortages.

Copyright Business Recorder, 2026