ISLAMABAD, Aug 23: The ministry of industries and production has given up its proposal to immediately import 245,777 tons of urea at a cost of Rs1.8 billion to overcome the shortage of the commodity.
However, it has urged the Economic Coordination Committee (ECC) of the cabinet to direct the ministry of petroleum and natural resources to ensure uninterrupted supply of gas and power during winter to avoid the immediate import of urea.
According to a summary prepared by the ministry of industries and production, a copy of which was also obtained by Dawn, the ECC, which would be meeting on Tuesday, was requested to reconsider the issue of allowing the import of urea to meet its shortage in the market.
The ministry believes that urea manufacturers are quite capable of increasing their production by about 150,000 tons in the sort-run provided gas availability at the maximum capacity level is guaranteed from August 2004 onward.
Senior officials of the ministry, through their summary, urged the ECC to direct the ministry of petroleum and natural resources to ensure the uninterrupted supply of gas with a view to enhancing the level of production.
The ECC was also requested to take the stock position of urea, which should be reviewed on the basis of analysis made by the ministry of food, agriculture and livestock in its Fertilizer Review Committee.
The ECC will now make the final decision on the basis of firms' figures of the actual requirements worked out by the ministry of industries and production. In order to ascertain the exact position of additional urea production by the fertilizer manufacturers against the supply of uninterrupted gas, a series of meetings with the manufacturers were held on August 9 and 10.
The meetings were chaired by the industries and production minister and was also attended by the director general of the ministry of petroleum and natural resources. After long and extended meeting and persuasions, the manufacturers agreed to produce additional 245,777 tons of urea in order to fulfil the demand for the Rabi season.
"Accordingly, during the year 2004-05, the manufacturers have promised production of additional urea, if uninterrupted supply of gas is ensured," the summary to be discussed by the ECC said.
An official concerned said Industries and Production Secretary Dr Mutawakal Kazi had concluded successful talks with the fertilizer manufacturers for meeting the shortage of the commodity. The purpose was to avoid the import of urea and subsequently avoid spending precious foreign exchange. "The ECC is now expected to accept the proposal of the ministry of production over the issue," he said.
