PM Forms Panel to Tackle DAP, Urea Price Surge

ISLAMABAD: Prime Minister Shehbaz Sharif has expressed grave concern over escalating Diammonium Phosphate (DAP) and urea prices, directing the formation of a high-level committee to scrutinize fertilizer pricing and recommend solutions.

Chaired by Minister for Economic Affairs Ahad Khan Cheema, the committee comprises Minister for National Food Security and Research Rana Tanveer Hussain, Minister of State for Power Abdul Rehman Khan Kanju, and Ahmed Umair. It has been ordered to convene urgently to address the crisis.

This action aligns with the Petroleum Division’s proposal to the Economic Coordination Committee (ECC), seeking allocation of indigenous gas to three key fertilizer plants—two in Punjab and one in Karachi.

Industry sources indicated that DAP prices, linked to international markets, have risen by Rs500 per bag domestically, while urea is being offered at Rs300 per bag below market rates.

The matter surfaced during a recent cabinet meeting on wheat crop assessment and the National Wheat Policy, triggering the Prime Minister’s decisive intervention.

In parallel, the Fertilizer Manufacturers of Pakistan Advisory Council (FMPAC) has pressed the government to dispel misconceptions about the fertilizer industry.

In a letter to various ministers and secretaries, FMPAC underscored the sector’s pivotal role in safeguarding national food security and economic stability. They highlighted consistent urea supply at rates far below international levels, countering misperceptions rooted in incomplete data.

FMPAC outlined key contributions:

• Indigenous urea provided at substantially lower prices than global rates, yielding Rs560 billion in annual farmer savings.
• Local production conserves USD 3-4 billion in foreign exchange yearly, eliminating cash subsidy needs for imports.
• The industry spares the government Rs300-400 billion in indirect subsidies that would arise from imported urea.

As the government addresses these challenges, focus remains on the committee’s recommendations to stabilize fertilizer prices and support Pakistan’s farmers.