Pakistan’s manufacturers seek government approval to export surplus urea to India, Afghanistan

A farmer disperses fertilizer in a rice paddy field on the outskirts of Lahore, Pakistan, on July 2, 2011. (AFP/File)
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Updated 04 November 2021
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Pakistan’s manufacturers seek government approval to export surplus urea to India, Afghanistan

  • Leading industry players say they can help the country earn $700 million in export revenue by selling urea to India, Afghanistan
  • Fertilizer manufacturers say every Rs50 increase in the price of a urea bag has an impact of one paisa on the overall price of bread

KARACHI: Pakistan’s fertilizer manufacturers said on Wednesday they had requested their government to allow them to export surplus urea to India and Afghanistan, adding their industry could earn about $700 million in export revenue for the country.

Addressing a news conference in Karachi, they said the country’s fertilizer sector could export about 700,000 to 800,000 metric tons of urea after meeting the country’s domestic requirement.

“We have approached the commerce ministry and other relevant departments by writing them a letter, asking them to let us export about 0.7 to 0.8 million tons of surplus urea,” Imran Ahmed, chief financial officer of Engro Fertilizers, told Arab News on the sidelines of the press briefing.

Ahmed said the immediate export market of Pakistan could be India and Afghanistan, though he noted other countries could also be potential buyers.

According to the data shared at the news briefing, the overall demand for fertilizer in India was 35 million tons, though it only produced 24 million tons and imported the remaining 11 million tons.

The import was costing India as much as $1,000 per ton, the media briefing was told.

“Pakistan has an opportunity to earn $700 million by exporting urea without any capital outflow,” Ahmed said, adding: “The potential income tax revenue for government through the export process could be $7 million, making the fertilizer sector one of the top exporters.”

Pakistani fertilizer makers said they could produce exportable surplus within six months through their capacity utilization.

“Pakistan can start exporting urea within six months after building security stocks at home,” Ahmed said.

Pakistan’s own urea demand is about 6.2 million tons per annum. The country meets around 84 percent of its requirement through local production while the remaining is met through imports, according to the official data.

The localization of fertilizer production and supply of subsidized gas has made it possible for the country to consume less foreign exchange on the import of urea and absorb higher impact of international prices.

“The price of local urea is Rs1,768 per bag versus its imported equivalent price of Rs9,345 per bag. This means urea is available in Pakistan at a significant discount of 81 percent which is equivalent to Rs7,500 per bag,” Ahmed said.

“Farmers are getting an annualized benefit of more than Rs350 billion and the country is expected to save $3 billion in import substitution in 2021,” he added.

He denied that fertilizer price hike had a major impact on food inflation.

“Urea prices do not have any impact on food inflation since only 2.6 percent of a farmer’s money is spent on it. Every Rs50 increase in the price of a urea bag has an impact of only one paisa on the price of bread,” he said.


With monitors and lawsuits, Pakistanis fight for clean air

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With monitors and lawsuits, Pakistanis fight for clean air

  • Independent air monitors expose gaps in official pollution data
  • Pollution exposure linked to heavy health and economic costs

KARACHI: With pollution in Pakistan hitting record highs in recent years, citizens clutching air monitors and legal papers are taking the fight for clean air into their own hands.

More than a decade ago, engineer Abid Omar had a “sneaking suspicion” that what the government described as seasonal fog was actually a new phenomenon.

“It wasn’t there in my childhood” in Lahore, said the 45-year-old who now lives in coastal Karachi, where the sea breeze no longer saves residents from smog.

With no official data available at the time, Omar asked himself: “If the government is not fulfilling its mandate to monitor air pollution, why don’t I do that for myself?“

His association, the Pakistan Air Quality Initiative (PAQI), installed its first monitor in 2016 and now has around 150 nationwide.

The data feeds into the monitoring organization IQAir, which in 2024 classified Pakistan as the third most-polluted country in the world.

Levels of cancer-causing PM2.5 microparticles were on average 14 times the World Health Organization’s recommended daily maximum.

Schools are often shut for millions of children and hospitals fill up when the smog is at its worst, caused by a dangerous combination of poor-quality diesel, agricultural burning and winter weather.

PAQI data has already played a key role in the adoption of pollution policies, serving as evidence during a 2017 case at Lahore’s high court to have smog recognized as air pollution that is a danger to public health.

Using one of their air monitors, PAQI demonstrated that “the air quality was hazardous inside the courtroom,” Omar said.

The court then ordered the regional government of Punjab to deploy its own monitoring stations — now 44 across the province — and make the data public.

But the government also says private monitors are unreliable and cause panic.

Researchers say, however, that these devices are essential to supplement official data that they view as fragmented and insufficiently independent.

“They got alarmed and shut down some stations when the air pollution went up,” Omar said.

3D-PRINTED MONITORS
Officials have overhauled the management of brick kilns, a major source of black carbon emissions, and taken other measures such as fining drivers of high-emission vehicles and incentivizing farmers to stop agricultural burning.

Worried about their community in Islamabad, academics Umair Shahid and Taha Ali established the Curious Friends of Clean Air organization.

In three years, they have deployed a dozen plug-sized devices, made with a 3D printer at a cost of around $50 each, which clock air quality every three minutes.

Although they do not contribute to IQAir’s open-source map or have government certification, their readings have highlighted alarming trends and raised awareness among their neighbors.

An outdoor yoga exercise group began scheduling their practice “at times where the air quality is slightly better in the day,” said Shahid.

He has changed the times of family outings to minimize the exposure of his children, who are particularly vulnerable, to the morning and evening pollution peaks.

Their data has also been used to convince neighbors to buy air purifiers — which are prohibitively expensive for most Pakistanis — or to use masks that are rarely worn in the country.

’RIGHT TO BREATHE’
The records show air quality remains poor throughout the year, even when the pollution haze is not visible to the naked eye.

“The government is trying to control the symptoms, but not the origin,” said Ali.

Pollution exposure in Pakistan caused 230,000 premature deaths and illnesses in 2019, with health costs equivalent to nine percent of GDP, according to the World Bank.

Frustrated with what they see as government inaction, some citizens have taken the legal route.

Climate campaigner Hania Imran, 22, sued the state in December 2024 for the “right to breathe clean air.”

She is pushing the authorities to switch to cleaner fuel supplies, but no date has been set for a verdict and the outcome remains unclear.

“We need accessible public transport... we need to go toward sustainable development,” said Imran, who moved from Lahore to Islamabad in search of better air quality.

Pollution has multiple causes, she said, and “it’s actually our fault. We have to take accountability for it.”