Govt’s Expensive Import of Urea to Cost Nearly Rs. 6 Billion in Subsidies

The Economic Coordination Committee’s latest decision to import expensive 100,000 metric tons of urea will cost billions in subsidies and put massive pressure on the current fiscal year budget, sources privy to the matter disclosed to ProPakistani. Sources said the import will cost at least Rs. 10 billion while a subsidy of Rs. 5.86 billion will be required to keep imported urea prices in line with the local market. UAE’s West Trade International FZE has submitted the lowest bid, which has been approved. Each 50 kg bag of imported urea will cost Rs. 7,332, with an estimated landed cost of Rs. 5,832 per bag. Meanwhile, the National Fertilizer Marketing Limited (NFML) will incur expenses of Rs. 1,500 per 50 kg bag. The minimum price of a 50 kg bag of urea in the local market is currently Rs. 4,400. The Trading Corporation of Pakistan (TCP) issued a tender for the import of 1.5 million metric tons of urea, which was opened on July 29, 2024. TCP received six bids, with the ECC approving the lowest one. The first batch of imported urea is expected to arrive in Karachi by August 16, 2024, sources added.