Details

Technical Note

FERTILIZER SECTOR IN PAKISTAN

Hafsa Ashfaq, Fazal Jawad Seyyed, Salman Khan, Ferhana Ahmad

INDUSTRY : Fertilizer

AREA : Agribusiness

ORGANIZATION :

LENGTH : 27

LUMS No : 13-108-2019-2

PUBLICATION YEAR : 2019

KEYWORDS:

Fertilizer, agribusiness, agriculture, Pakistan, suppliers, crop production, supply and demand

DESCRIPTION:

Fertilizers are one of the key inputs in crop production and contribute around 30 to 50 percent in enhancing crop yields. They are essential in obtaining optimal output from high yielding seed varieties and to maintain the soil fertility. However, certain factors challenge the growth of the fertilizer sector in Pakistan. The note serves as an introduction to the fertilizer sector in Pakistan. It explores the position of major players in the market, such as the suppliers, matching with the factors that drive the demand for fertilizers, and the moderating role of the government in the form of the regulator. This triangular connection brings out challenges when exposed to factors related to each player, such as i) in case of demand, seasonality, use of appropriate fertilizer mix, financial capacity of farmers, ii) in case of supply, gas shortages, gas prices, LNG usage, dynamics of the international fertilizer market; and iii) in case of government, subsidies, and taxes, unpaid subsidies, etc.

LEARNING OBJECTIVES:

The student will be able to: 1. Understand the fertilizer sector nomenclature; identify different players and their respective role in operating this sector. 2. Understand the relationship between the supply and demand and the overarching role of government supporting this relationship. 3. Comprehend the various challenges which the fertilizer sector is facing and the steps required to overcome these challenges.

SUBJECTS COVERED:

Agricultural Business