Group to devise plan for urea import

Published February 24, 2005

ISLAMABAD, Feb 23: The Ministry of Industries and Production has set up a working group in order to formulate a mechanism for the import of 500,000 tons of urea following considerable reduction in its production due to the frequent snapping of gas supply to urea plants.

Normal gas supply to the country's fertiliser sector has been disrupted for the past few months as Sui gas pipelines have come under frequent attacks by tribes in Balochistan.

The working group will also prepare a strategy for extra cost of import and its mode of payment. The decision regarding it was taken in a meeting presided over by Minister for Industries and Production Jehangir Tareen.

The working group comprises representatives of all manufacturers of urea, the Ministry of Food, Agriculture and Livestock, the Ministry of Industries and Production, and the Trading Corporation of Pakistan (TCP).

Earlier, the manufacturers informed the minister that the growth rate of urea had increased from three per cent last year to five per cent this year. In spite of the increasing base, they complained, there was a greater need to import urea because of the decline in production because of frequent snapping of the gas supply.

On the other hand, the demand for fertilisers had increased considerably across the country and could only be met through increased production, which was impossible in the absence of gas supply, they said.

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