ISLAMABAD: The Federal Government has reportedly decided to import 0.1 million metric tons of urea from China on government-to-business (G2B) basis to meet shortfall in the country, well informed sources told Business Recorder.
Separately, the Punjab government has taken action against over 150 dealers for hoarding, who the government wants blacklisted as per an agreement with the fertilizer industry, the sources added.
On October 5, 2021, Economic Coordination Committee (ECC) of the Cabinet approved tender to import 100,000 MT of urea. The decision was ratified by the Federal Cabinet on October 13, 2021 and requested PPRA to exempt the urea import tenders from Rules 2004 issued on October 1 and October 11, 2021, which was rejected.
Trading Corporation of Pakistan (TCP) again issued tender on October 22, 2021, which was opened on November 22, 2021 but no bid was received. However, now the federal government has decided to import 100,000 MT of urea from China on G2B basis.
On the directions of Prime Minister, Secretary Industries and Production talked to the Chinese ambassador, who has nominated a focal person to process the request, say sources.
Cabinet to exempt urea import tender from PPRA Rules
The Cabinet has further been informed that online real time system of monitoring urea production and sale (https://pitb.gov.pk) has been set up, which provides province-wise/ district-wise, dealer-wise/ producer-wise information with registration number of trucks. Reward for whistleblowers on hoarding and profiteering has been enacted. The monetary limit has been set at lower of Rs2.5 million or 5 per cent of sale value of hoarded quantity. The amended rules have been vetted by Law Ministry and are being sent to CCLC for approval.
Access to the portal has been provided to Ministry of Industries and Production, Chief Secretary (Punjab) and district administrations.
As a result of information sharing, distribution correction has started taking place and action has been taken against hoarders and profiteers by the government of Punjab. Prices of urea have started to come down.
SNGPL-based urea plants have been allowed operation from Sept 16, 2021 till Jan-2022 to generate additional production of 300,000 MT. Maximum gas supplies are being ensured to all fertilizer units including Pak Arab and FFBL (additional production of 170,000 MT). Full supply has been ensured from Mari gas system. Ministry of Energy (Petroleum Division) and MOI& P will review pricing and supply arrangements after Rabi season to ensure adequate domestic production of fertilizer.
Copyright Business Recorder, 2021