Since it is imperative for Pakistan to improve its balance-of-trade for stabilizing the national economy, therefore all industries must be given requisite incentives to boost exports. In the same context, export of surplus fertilizers can be a quick and sustainable solution to reduce the trade-deficit and earn valuable foreign-exchange.

Since Pakistan’s domestic fertilizer manufacturers have achieved very high productivity over the past couple of years. While fulfilling the local demand of Pakistan’s agricultural sector, they had accumulated a big surplus opening inventory of nearly 1.5 million tons of urea in 2017. This surplus inventory could be easily exported without creating any shortage of urea within the country, because all these enterprises, including the RLNG-based factories are willing to continue their production if a favorable environment and sufficient Gas and other inputs are consistently provided.

The management of such a large inventory involved a huge carrying-cost and storage expenses. Therefore, this year the government’s Economic Coordination Committee (ECC) had allowed the export of 300,000 tonnes of urea, to reduce this inventory burden. However, the time-margin given for achieving this export-volume was too short, and it will expire on the 31st of October, 2017.

AMMAR MUZAFFAR,

Karachi, October 18.