Third-Party Audit of Fertilizer Companies Ordered

ISLAMABAD: The Ministry of Industries and Production has decided to conduct a third-party audit of the fertiliser companies to determine the production costs.

Federal Minister for Industries and Production Rana Tanveer Hussain while chairing a high-level meeting of the Fertilizer Review Committee (FRC) here on Thursday said that he has directed a third-party audit of the fertiliser factories in a bid to determine the cost of production of fertiliser companies, in order to ensure transparency and fair pricing in the industry.

The agenda of the meeting included reviewing the available stock of urea, prices, demand, and supply. The meeting was also attended by Federal Secretary Industries and Production Dr Muhammad Fakhre Alam Irfan and other relevant officials.

Rana Tanveer Hussain said that there is no shortage of urea fertiliser in the country and an uninterrupted supply of gas to fertiliser companies are being provided to ensure smooth production of urea. He also directed fertiliser companies to review the performance of dealers and agencies, and instructed provinces to verify fertiliser dealers and agencies, with any ghost dealers and agencies to be blacklisted.

The minister emphasised that fertiliser companies must ensure the supply of fertiliser to the provinces.

Hussain said there is no shortage of urea in the country and fertiliser companies must ensure the supply of fertilisers to provinces. He said the uninterrupted supply of gas will continue to fertiliser companies to ensure smooth production of urea.

The minister said the fertiliser companies should reassess the performance of dealers and agencies. He said provinces should verify fertiliser dealers and agencies.

The participants decided to hold weekly meeting of the FRC aiming at smooth monitoring of the supply and demand situation of fertilisers in the country.

The last meeting of FRC held on April 25 has recommended import of 200,000 tons of urea to stabilise prices and supply in the country during the Kharif season.

The meeting was told that demand for urea increased by 3.6 percent compared to the previous year. The projected demand for the Kharif season is approximately 3.442 million tons. The available stock in the country stood at approximately 3.192 million tons.

The shortfall will be met by importing 200,000 tons, and the rest will be met by increasing production in the local fertiliser plants.

The government has also decided to provide uninterrupted gas supply to the local fertiliser plants enabling them to remain operational at full capacity to meet the demand.