Fertilizer industry to enable over USD 5.3 billion import substitution.

ISLAMABAD -- The local fertilizer Industry is providing urea at around 84 percent discount, equivalent to Rs 9,823 per bag and is expected to enable import substitution of USD 5.3 billion in 2022.

Discussing the latest business results and future outlook in first quarter analyst briefing, Imran Ahmed - Chief Financial Officer of Engro Fertilizers shared that the fertilizer sector is passing on a benefit of Rs 900 billion per annum to farmers through the provision of urea at significant discount to current global prices. Over the last 10 years, the industry is passed on benefit of over Rs 1.4 trillion to the farmers through lower urea prices. This amount is four times higher the benefit that industry has received through gas pricing under the Fertilizer Policy 2001.

At the same time, the industry has been playing a significant role towards reducing the country's trade and fiscal deficit as the country is self-sufficient in urea production.

In the last annual general meeting of the Company, shareholders expressed concerns over the sharp disparity between international and local urea prices. Shareholders further added that the company has been losing shareholders' value by pricing urea at a significant discount to import parity.

Imran Ahmed emphasized that urea demand has increased by 17% in Q1 2022 compared to the same...