April 22, 2022 (MLN): The country’s overall nutrients offtake jumped by 13.5% to 332,000 tonnes during March 2022 from 293,000 tonnes in the same month last year, the latest monthly report of fertilizer offtake issued by the National Fertilizer Development Company (NDFC) showed today.

Among the nutrients, nitrogen offtake increased by 34.5% to stand at 278,000 during March 2022. While phosphate and potash offtake went down by 37.6% and 32.4% when compared to March 2021.

The report underlined that about 843,000 tonnes of different fertilizer products were produced in Pakistan during the month of March 2022. The major share was of urea (70.7%) with 596,000 tonnes.

Other products were DAP (77,000 tonnes), Nitrophos (78,000 tonnes), CAN (72,000 tonnes), SOP (1,400 tonnes), SSP (8,700 tonnes) and various grades of NPK (10,000 tonnes). Total imported supplies were 71,000 tonnes comprising 50,000 tonnes of urea, 19,000 tonnes of DAP 200 tonnes of SOP and a small quantity of MOP i.e. 1,500 tonnes during March 2022.

During Rabi 2021-22, total nutrients offtake stood at 2,510,000 tonnes, depicting a decline of 1.9% as compared with the same time frame of last year. Out of this, nitrogen and potash offtake increased by 1.2% and 8.2%, respectively while phosphate offtake witnessed a decline of 11.7% over the corresponding period of last year.

The country’s urea sales increased by 48.3% to 509,000 tonnes in March 2022 when compared to 343,000 tonnes in the corresponding month of last year.

Cumulatively, during Rabi 2021-22 (Oct-March), urea offtake was 3,320,000 tonnes, up by 3% compared to Rabi 2020-21.

The report noted that the price of a 50 kg bag of urea (sona) in the domestic market during the said month inched down by 1.9% MoM to Rs1,936 while the price of urea (other) went up by 2.7% over February 2022.

In the international market, the price of Fob bulk China urea price was quoted at $550-900/tonne in March 2022. Fob bulk Middle East prices were reported at $600-960 per tonne. Ex-Karachi price of imported urea was in the range of Rs6,381 to Rs10,468 per 50 kg bag.

Province-wise, urea offtake increased in Punjab and Sindh by 37% and 211%, respectively. Its offtake decreased by 16% and 27% in KP and Balochistan as compared with the previous year.

The offtake during Kharif 2022 is expected to be around 3,402,000 tonnes. Total available urea would be about 3,414,000 tonnes including 3,214,000 tonnes of domestic production. Going by the report, the plan for the import of 200,000 tonnes of urea needs to be materialized immediately; otherwise, a shortage may occur during June and onward.

On the other hand, the sales of diammonium phosphate (DAP) decreased by 44.6% to 80,000 tonnes in March 2022, against 144,000 tonnes recorded in the same month last year. This decrease in DAP offtake is due to high prices of DAP in the international and accordingly in the domestic market.

The report noted that the high price of DAP has resulted in increased usage of urea and other nitrogenous fertilizers.

During Rabi 2021-22 (Oct-March), DAP offtake was 927,000 tonnes, lower by 16.4% compared to the same time frame of Rabi 2020-21.

The report stated that the price of a 50 kg bag of DAP in the domestic market during the said month edged down by 0.2% to Rs9,327 when compared to Rs9,347 reported in February 2022.

In the international market, DAP prices in China ranged between $870-1050/tonne fob bulk. The price of imported DAP ranged from Rs8,851 to Rs12,301 per 50 kg bag during March 2022.

Province-wise, DAP offtake during the review month declined by 48%, 36%, 47% and 53% in Punjab, Sindh, KP and Balochistan, respectively as compared to March 2021.

As per the report, Kharif 2022 started with an opening stock of 276,000 tonnes of DAP. The total availability will be around 776,000 tonnes that including 420,000 tonnes of domestic production and 80,000 tonnes of import. The supply-demand gap will be filled by imports through the private sector.

June 18, 2022: State Bank of Pakistan (SBP) Friday extended the validity period of the renewable energy financing scheme and Islamic financing facility for two years, up to June 30, 2024.

According to a circular issued by SBP’s Infrastructure, Housing and SME Finance Department, Revised SBP Financing Scheme for Renewable Energy was launched in June 2016 to lend support in addressing the dual challenge of energy shortage and climate change through the promotion of renewable energy.

The central bank, later on, based on stakeholders’ feedback, extended the expiry period of the scheme to June 30, 2022.

The Mudarabah-based Islamic financing facility for renewable energy (IFRE) was introduced in February 2019 for the Islamic Banking Institutions (IBIs) and DFIs.

The SBP financing scheme and Islamic financing facility for renewable energy were available to prospective sponsors, vendors and suppliers in three different categories encompassing renewable energy projects with a capacity of below 1 megawatt and more than 1 MW and up to 50 MW.

Loans amounting from Rs 400 million to 6 billion could have been availed depending on the category under the financing facility with up to 100% refinance by SBP for a period of 10 to 12 year.

Jun 18, 2022: Prime Minister Shehbaz Sharif Friday felicitated the nation and welcomed the announcement of Financial Action Task Force (FATF) that Pakistan had met all its conditions for exclusion from the Grey List.

In a statement, he said, “Praise be to Allah, return of Pakistan to the white list is a big success of Pakistan.”

He congratulated the government institutions, personalities and relevant team and said their joint efforts brought fruit.

He appreciated the performance of Minister of State for Foreign Affairs Hina Rabbani Khar and team of the Foreign Ministry.

The PM said the efforts of the basic cell related to FATF and of military and civil leadership included in it, were praise worthy and credit went to them for their work in this national endeavor.

“I pay tribute to the whole team working for the success of Pakistan,” he said adding the statement of FATF was recognition of the restoration of the international reputation of Pakistan.

“More such good news will be destiny of Pakistan in future,” he said adding the return of Pakistan to the white list would help in improving the economic and financial situation of Pakistan.

“We are working with the same determination for the economic revival of Pakistan,” he concluded.

Jun 18, 2022: Federal Minister for Water Resources Syed Khursheed Ahmad Shah on Friday said the government had allocated Rs 105 billion in the federal budget 2022-23 for the construction of dams, and the amount would be increased by Rs 25 billion, if needed.

Talking to PTV news, he said the government had expedited the construction work on Dasu, Diamer-Bhasha and Mohmand dams with the aim to complete them at earliest for conserving water.

The minister said he will visit every under-construction dam four times in a year to ensure the quality of work as well as to resolve the grievances of the local community.

The construction of new dams would not only help address water and energy crisis rather but also generate jobs, and tourism and business opportunities, he added.

Shah said the rivers need dredging and lining to enhance the water storage capacity and that he would raise this issue in the cabinet meetings. "The government should ensure the provision of irrigation water to the agriculture sector for protecting our food basket."

He said, the government was working to strengthen the national economy besides providing relief to the farmers and government servants. In the budget, the government had taken revolutionary steps for the agriculture sector which had been the backbone of the economy, he said, adding, the provincial governments should launch awareness programmes to impart knowledge to farmers about certified seeds for boosting their produce.

June 18, 2022: Like many other governmental organizations, FBR has played a key role in completing the FATF actions related to DNFBPs, cash smuggling, investigating tax crimes for money laundering, and confiscating the proceeds of tax crimes. In the 34 actions of the FATF action plans, FBR has directly dealt with at least 8 actions and spearheaded the process of implementation.   

In order to ensure compliance with regard to DNFBPs, FBR has issued AML/CFT regulations, conducted extensive outreach to educate DNFBPs, established a dedicated IT based DNFBP Management System, launched customized mobile App for registrations and screening purposes, conducted a large number of onsite inspections, and imposed a wide range of penalties for non compliance.

Similarly, in the area of cash smuggling, FBR Customs has fortified cross-border controls and implemented a comprehensive mechanism to combat cash smuggling, by all means possible. Likewise, FBR has also undertaken a large number of money laundering investigations against the tax crimes and has also made significant confiscations in this regard.

Mr. Asim Ahmad, Chairman FBR/ Secretary Revenue Division, has felicitated all the government organizations and their key personnel including the relevant officers of Inland Revenue Service and Pakistan Customs who have worked tirelessly to complete the FATF actions. The Chairman FBR reiterated FBR’s unflinching resolve and an unwavering commitment to continue with implementing the anti-money laundering and countering financing of terrorism regime in the areas supervised by FBR.