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18 th AFA Int’l Annual Fertilizer Forum & Exhibition Feb., 7-9-2012, Sharm El-Sheikh , Egypt Maritim Jolie Ville Hotel Historical Development of Nutrient use in Pakistan, Current Scenario & Future Outlook Mr. Muhammad Tahir Saleem Editor, Farming Outlook Pakistan

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18th AFA Int’l Annual Fertilizer Forum & Exhibition Feb., 7-9-2012,

Sharm El-Sheikh , Egypt Maritim Jolie Ville Hotel

Historical Development of Nutrient use in Pakistan, Current Scenario & Future Outlook

Mr. Muhammad Tahir Saleem

Editor, Farming Outlook

Pakistan

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HISTORICAL DEVELOPMENT OF FERTILIZER AND THE CURRENT SCENARIO IN PAKISTAN

18th AFA Int’l Annual Fertilizer ForumSharm El-Sheikh, Egypt

7- 9 February, 20121

COUNTRY PROFILE – 1

Per cent of total farm area under various size of farms

• Less than 5 ha : 44 %• 5 to 10 ha : 19 %• 10 to 40 ha : 26 %• > 40 ha : 11 %

Population : 180 million (2.05% gr)Poverty : 30 % population Literacy : 57.7%

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COUNTRY PROFILE – 2

• Land Area: 79.61 m ha (796,100 sq km).• Cropped Area: 23.67 m ha (30 %).• Major Crops:

– Wheat: 8.8 m ha– Cotton: 2.7 m ha– Rice: 2.4 m ha– Sugarcane: 1.0 m ha– Maize: 0.9 m ha– Fruits & Veg: 1.3 m ha

Total: 17.1 m ha

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COUNTRY PROFILE – 3Yield Gap

Crop ProgressiveFarmers’ Yield (t/ ha.)

National Yield (t/ha.)

Yield Gap  (%)

Wheat 4.6 2.6 43.5

Cotton 2.6 1.8 30.8

S cane 200 54.5 72.8

Maize 6.9 2.9 58.5

Rice 3.8 2.1 45.5

Source: Agri Stat Pakistan 2008 – 09, Planning Commission, 2009

National yields are generally about 50 %of what progressive farmers obtain. 4

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FERTILIZER DEVELOPMENT• Fertilizer introduced in 1952 (1,000 t)

• Current level > 3.93 million t nutrients– Nitrogen : 3.13 million tonnes– Phosphate : 0.77 million tonnes– Potash : 0.03 million tonnes

• In terms of use rate: – Nitrogen : 132.2 kg per ha– Phosphate : 32.5 kg per ha– Potash : 1.3 kg per ha– NPK : 166.0 kg per ha

• The use rate in 2009-10 was 184.2 kg NPK5

STAGES OF DEVELOPMENT

• Pakistan underwent three classicalphases of development

1. Introductory phase : 1949 to 1980

2. Take off phase : 1980 to 1995

3. Advanced phase : 1995 to date

• Every phase of developmentwarrants a different strategy forplanning, research and extension.

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INTRODUCTORY PHASE - 11949 TO 1980

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• Ammonium sulphate field demonstration in1952.

• Fertilizer simple trials in farmers’ fieldsinitiated in 1958 under Freedom From HungerCampaign, later taken over under FAO .

• Phosphate deficiency discovered wide spreadfor the first time.

• Extensive fertilizer field days held to promotefertilizers .

• SSP and AS plants setup in 1958, followed byEngro, DHL and Pakarab – FFC finally in 1980.

INTRODUCTORY PHASE - 21949 TO 1980

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• Fertilizer use in 1960 at World level : 27.4 m n t Developing Countries : 2.7 m n t South Asia : 0.4 m n t

• Pakistan fertilizer use in 1960 20 thousand tonnes (1.3 kg per ha)

• Pakistan fertilizer use in 1975 425 thousand tonnes (24.5 kg per ha)

• Pakistan fertilizer use in 1980 1044 thousand tonnes (55.5 kg per ha)

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TAKE OFF PHASE 1980 TO 1995

• Take off transitory phase: 1975 to 1980 whenfertilizer use per ha rose from 25 to 55 kg per ha.

• Fertilizer use in 1995 rose to 98.6 kg per ha.

• Global nutrient scenario from 1960 to 1990:

World : 27.4 to 143.6 m t South Asia : 0.4 to 14.8 m t Pakistan : 0.02 to 1.89 m t

• In Pakistan this phase was marked by setting up ofNFDC – to consolidate agronomic data, improvingresearch focus, policy planning, introducing efficiencyconcept, deregulation and expansion in industry . 9

ADVANCED PHASE 1995 ONWARDS

• Fertilizer use rose from 2.2 about 4.0 million tonnes –in terms of usage from about 100 kg to the presentlevel of about 180 kg per ha.

• CIDA project on potash demonstrated the benefits ofNPKs and introduced MOP in Pakistan.

• Engro introduced NPK blends based on MOP.

• NFDC playing a monitoring role besides liaison withindustry and provincial research and extension.

• Market completely de-regulated.

• Vast increase in fertilizer industry expansion – from1.5 to 3.0 m t of nutrients – FFC (urea & DAP) &Engro (Urea & NPKs) being the major producersbesides Fatima’s (NP, urea, CAN). 10

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PROBLEMS – CURRENT SCENARIO - 1

• Increasing prices of inputs, particularly perbag of 50 kg fertilizers rose from 1995 toonwards:

Urea : Rs. 235/- to Rs. 800/-. NP : Rs. 250/- to Rs. 1,452/-. DAP : Rs. 379/- to Rs. 2,267/-

• Current year marked by fertilizer shortages andfurther increase in prices raising urea to Rs.1,760/- and DAP to more than Rs. 4,000/- perbag – phenomenal increases.

• Gas shortages reduced local production –resulting in heavy subsidies on imported urea. 11

PROBLEMS – CURRENT SCENARIO - 2

• Potash use has been neglected and there is nostrategy to promote it.

• Fertigation on commercial basis remains a far cryyet.

• Fertilizer efficiency poor as reflected by too muchemphasis on nitrogen: poor nutrient ratios, soil-testbased fertilizer recommendations lacking and formaltraining an education of farmers almost non-existent.

• Fertilizer supply in poor shape – belated imports andgas shortages for local production.

• The farmers suffer unless he embarks on innovativeagricultural production techniques. 12

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PROBLEMS – CURRENT SCENARIO - 3

• A recently emerged problem is theAmericans’ concern on the use of CalciumAmmonium Nitrate (CAN), which accordingto world media is also likely to be used inexplosives by the terrorists.

• You can not stop producing CAN as it is a byproduct of nitro-phosphate.

• Possible solution?

• Monitoring of the movement of CAN andprobably zoning its usage.

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ART IS LONG, LIFE SHORT

• I like to introduce to you

FARMING Outlook which completes its 10 years of publication

• The 10-year anniversary issue is available.

• We encourage you to subscribe as well as tocontribute short papers to it.

• It is a mission-oriented undertaking and wesolicit your cooperation.

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I am visiting Egypt which today is different than I found on my first visit in 1964 –

almost 48 years ago – on my way to UK

AND

THANK YOU

FOR YOUR PATIENT HEARING

I appreciate and acknowledge with gratitude AFA’s assistance in

making my participation possible

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Historical Development of Nutrient Use in Pakistan, Current Scenario and Future Outlook

M. Tahir Saleem

Abstract The nutrient use in Pakistan during 2010-11 was 3,933 thousand tonnes – about 166 kg per hectare (however, the offtake was almost about 10 percent lower than the previous year, in terms of the use rate it was 183.2 kg per hectare). This is a considerably advanced use of nutrients in Pakistan which has developed from a nominal use of nitrogen (1,000 tonnes) in 1952-3. The phosphate use was introduced in 1959-60 with 100 tonnes P2O5, and potash in 1966-67 with 120 tonnes. The development of fertilizer use in Pakistan can be divided into three phases: the introductory phase (1949 – 1980), take-off phase (1981 – 1995) and advanced phase (1996 onwards). The paper briefly outlines the historical development of nutrients and the current scenario besides the problems faced. Introduction A brief country profile, given below, is warranted for appreciating the development of fertilizer use in Pakistan.

• Area and crops: Of the total land area of 79.61 million hectares, about 30 per cent (23.67 million hectares), was cropped area during 2010-11: major crop groups constituting the total cropped area were the followings:

Cereals (food grains): 58 per cent, Cash crops (sugarcane, cotton, etc.): 17 per cent Pulses and oilseeds: 9 per cent Fruits and vegetable: 7 per cent Other crops: 9 per cent

• Yield gap: There is considerable yield gap between the national yields and the achievable

potential yields of crops, which offers prospects of future developments through the application of nutrients, better crop varieties and improved crop husbandry, including seed.

• Population and literacy: The current population is about 180 million people, with a growth rate of 2.05 per cent, of which the rural population constitutes about 63 per cent; literacy rate is 57.7 per cent.

• Economic growth rates: Real GDP growth during 2010-11 was estimated at 2.4 per cent, compared with 6.5 per cent in developing countries and 8.7 per cent in South Asia. The share of agriculture in GDP was 20.9 per cent and the growth rate in agriculture was 1.2 per cent. Unprecedented floods during 2010-11 partly explain the low growth rates of economy.

Fertilizer development Fertilizer was introduced in Pakistan in the early 1960s with only 1,000 tonnes of nitrogen as ammonium sulphate in 1952-53. Phosphate was introduced in 1959-60 with 100 tonnes as single superphosphate and potash in 1966-67 with 120 tonnes as potassium sulphate. Three phases of development can be recognized as briefly discussed below: Introductory phase – 1949 to 1980 When fertilizer was introduced in Pakistan, almost 50 years ago, it was believed that Pakistan soils were deficient only in nitrogen, except some sub-mountainous tracts which were thought low in phosphate. Thus, when the first fertilizer plant of SSP was established in 1957, its producers were wondering what to do with the product.

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The history of fertilizer development in Pakistan starts with the initiation of simple trials in farmers’ fields in 1952 by the then agricultural chemist, Dr. A. Wahhab of the then agricultural research and college, Lyallpur (now Faisalabad). This led to the development and implementation of a project in 1958, with support from United Nations (UN) Freedom from Hunger Campaign funds, under the technical guidance of a Dutch agronomist, Dr. J. G. Vermaat. The project entitled ‘Rapid Soil Fertility Survey and Popularization of Fertilizer’ was based on the principle of laying out dispersed trials in farmers’ fields because the Government research farms did not represent farmers’ conditions, both in soil types and agronomic management. Fertilizer recommendations based on the average response of these dispersed trials in an area, which sampled all possible soil-climate-management conditions, were more realistic compared to those based on data generated from research stations. Further, because these trials involved the active participation of the farmer they had a tremendous impact on the pace of fertilizer use development in the country. Surprisingly during the very first year phosphate response, in combination with nitrogen, was noticed wide-spread in farmers’ fields. Thus, over the next few years the deficiency of phosphate in Pakistan soils was established. Field days on the site of these simple trials were laid to show farmers the response of crops to nitrogen and phosphate. This helped a lot in developing the use of fertilizer in Pakistan. The introduction of semi dwarf high yielding wheat varieties in the mid 70s, requiring higher application of nutrients, served as a kick-start to fertilizer offtake in Pakistan. Fertilizer use which was only 71 thousand tonnes in 1964-65 increased to 312 thousand in 1969-70 and by the end of next decade it rose to 1044 thousand tonnes in 1979-80. This phenomenon goes under the name of Green Revolution. As a result, within a span of two decades, fertilizer use increased from 1.3 kg per hectare in 1959-60 to 18.6 kg in 1969-70 and to 55.5 kg per hectare of cropped area in 1979-80. The development of fertilizer in introductory phase is summarized in Table-11 . Table-1: Highlights of fertilizer development in the introductory phase

(‘000 tonnes) Year N P2O5 K2O Total Remarks

Fertilizer use - offtake 1952-1953 1.0 - - 1.0 Nitrogen introduced 1959-1960 19.3 0.1 - 19.4 Phosphate introduced 1966-1967 112.8 3.9 0.1 116.8 Potash introduced 1969-1970 274.0 36.6 1.3 311.9 Semi dwarf cereals introduced 1979-1980 806.0 228.5 9.6 1044.1 NFDC established

Fertilizer production 1952-1953 - - - - 1959-1960 8.9 0.2 - 9.0 1st SSP and AS plants setup 1969-1970 129.3 4.2 - 133.4 NFC, Exxon and DHL plants 1979-1980 388.9 49.8 - 438.6 FFC urea at Mirpur Mathelo Source: National Fertilizer Development Centre (NFDC) The first single super phosphate (SSP) plant was established in 1957 (at Faisalabad) with an annual capacity of 103 thousand tonnes phosphorus (P205) and the first ammonium sulphate (AS) plant in 1958 (at Daud Khel) with an annual capacity of 90 thousand tonnes nitrogen (N). Then other plants by NFC, Exxon, DHL and FFC followed suit (Table-1).

1 For detailed data see annexes-1 and 2.

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Take off phase – 1980 to 1995 This phase is marked by the emergence in 1978 of National Fertilizer Development Centre (NFDC) with the Planning Commission, Government of Pakistan. It was at this time that the need was felt for a national organization to provide guidance in the development of fertilizer use and local production, besides serving as a forum to discuss problems. The Centre was supported initially by the Norwegian up to June, 1981, and then by the Dutch under FAO. The national staff was supported by the international counterparts. It was during this phase that NFDC took the leading role in national policy planning both for agronomic use of fertilizer and for expansion in fertilizer industry. The voluminous data collected under the disbursed simple trials in farmers’ fields from all over the country were collated, analyzed and interpreted for developing rational fertilizer recommendations. As a result during the take off phase fertilizer use increased from 55.5 kg in 1979-80 to 86.4 kg in 1989-90 and to 98.6 kg per cropped hectare in 1994-95. Thus, fertilizer use during this phase increases by 78 per cent. Necessary data are presented in Table-2. Table-2: Highlights of fertilizer development in the take off phase

(‘000 tonnes) Year N P2O5 K2O Total Remarks

Fertilizer use - offtake 1979-1980 806.0 228.5 9.6 1044.1 NFDC established 1989-1990 1467.9 382.4 40.1 1890.4 1994-1995 1738.10 428.41 16.55 2183.06

Fertilizer production 1979-1980 388.9 49.8 - 438.6 FFC urea at Mirpur Mathelo 1989-1990 1156.4 105.1 - 1261.5 New plants by FFC & NFC 1994-1995 1544.1 92.1 - 1636.2 Source: National Fertilizer Development Centre (NFDC) Fertilizer production also increased considerably with the setting up of new plants. Pakarab NP plant established in 1979 became operational during this phase besides FFC’s urea plants at Goth Machhi and NFC’s SSP and urea plants (Annex-3). This raised local production from almost 439 thousand tonnes in 1980 to 1636 thousand tonnes in 1995 – an increase of 273 per cent. Nitro-phosphate was introduced in the country. Another outstanding achievement of this phase was an interaction between the fertilizer industry and fertilizer agronomist in the country, in such forums as workshops, seminars and policy discussions. This was facilitated by NFDC. Besides, the Government of Pakistan was advised on the fertilizer situation and policies. For this purpose short and long term fertilizer projections were developed as guidelines in association with FAO expertise. The integrated nutrient management system was also initiated by NFDC and taken up by the provinces for implementation. Considerable emphasis was also laid on fertilizer efficiency – research on urea super granules – and on monitoring nutrient ratios. Pricing of fertilizers was also guided by the value cost ratio concept. Advanced (maturity) phase – 1995 to date This is a phase of challenges. Once fertilizer use has been developed up to almost 100kg per hectare as in the previous phase of take off, its further increase requires refinements in fertilizer efficiency through achieving better nutrient ratios and precision methods of application. Further, fertilizer sector having been de-regulated during this phase, the differential between the locally produced and the imported quantities of fertilizers posed problems of pricing. The role of NFDC becomes more crucial.

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An outstanding achievement of this phase was the introduction of MOP fertilizer as alternate source of K besides the traditional SOP. This was achieved under CIDA / PPIC project. Under this project blending concept was introduced through a pilot project. The success of this project led Engro Fertilizers Ltd. to setup their NPKs blends based on MOP. This was a landmark achievement in the history of fertilizer development in Pakistan. Further, research and development in micronutrients took a boost under Pakistan Agriculture Research Council (PARC) and deficiencies were delineated for crops and soils. This area is yet to see the application of micronutrients in the field. During this phase fertilizer use increased from 98.6 kg in 1994-95 to 184.2 kg per cropped hectare in 2009-10. NPK blends prepared by Engro Fertilizers Ltd. were introduced commercially in 2004-05 for various crops and areas in Pakistan. This development, however, need to be taken up by other fertilizer manufacturers and dealers in order to promote balanced nutrition of crops. Nutrient ratios widened towards the end of this phase with the increased offtake of nitrogen compared to phosphate and potash. In fact, never took off, primarily because neither the industry nor the public sector made any effort. This reflects bad on fertilizer efficiency and crop quality. Fertilizer use during this phase is summarized in Table-3 Table-3: Highlights of fertilizer development in the advanced phase

(‘000 tonnes) Year N P2O5 K2O Total Nutrient ratios(N:P2O5:K2O)

Fertilizer use - offtake 1994-1995 1738.10 428.41 16.55 2183.06 4.1 : 1.0 : 0.04 1999-2000 2217.77 597.16 18.50 2833.42 3.7 : 1.0 : 0.03 2004-2005 2796.42 865.11 32.51 3694.04 3.2 : 1.0 : 0.04 2009-2010 3476.29 860.44 23.76 4360.49 4.0 : 1.0 : 0.03

Fertilizer production 1994-1995 1544.1 92.1 - 1636.2 1999-2000 2039.6 223.5 - 2263.2 FJFC: DAP and urea plant 2004-2005 2373.1 324.8 20.1* 2717.9 Engro: NP and NPK 2009-2010 2669.0 403.0 10.0 3082.0 Fatima and Suraj Fertilizers Source: National Fertilizer Development Centre (NFDC) * This is locally blended NPKs through imported MOP and locally produced urea by Engro Fertilizer Ltd. As to the fertilizer industry development, DAP plant was setup in 1998 by Fauji Jordon Fertilizer Corporation at Port Qasim which raised local phosphate production considerably, reducing dependence on imports. Further, new plants of urea, NP and CAN, SSP, NPK blends came into being by Engro Fertilizers Ltd., Fatima Fertilizer Ltd., etc. The production data are given in Table-3 and details in Annex-3 Problems Among the problems encountered during this phase, they include:

1. Increasing prices of inputs, particularly fertilizers which increased phenomenally from 1994-95 to 2009-10 (urea price per bag of 50kg increased from Rs. 235 to Rs. 799, NP from Rs. 250 to Rs. 1,452 and DAP from Rs. 379 to Rs. 2,267). However, output prices considerably balanced the input output ratio.

2. The pricing problem has assumed a sharper focus during the 2010-11 and the current year when price of urea has risen to Rs. 1,760 and DAP to Rs. 4,162 per bag (January, 2012). This has adversely affected the benefit cost ratio of fertilizers.

3. Lately shortage of gas has resulted inconsiderable negative impact on local production of fertilizers with resultant reduced production and consequently fertilizer shortage. This is still continuing.

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4. Timely import of fertilizers to meet the shortfall is another aspect requiring attention. Besides, the

price of the imported urea is far more than the locally produced product which results in large subsidies.

5. The result is that fertilizers have not only become more expensive but they are also in short

supply in the market. The ultimate sufferer is the farmer. The current scenario Fertilizer offtake during 2010-11 has decreased to 3,933.0 thousand nutrient tonnes (166 kg per hectare) by 9.8 per cent compared to 2009-10 (183.2 kg per hectare). This is attributed to short supply of fertilizers besides their increasing cost. Besides the quantity, the nutrient ratio has deteriorated. This is likely to affect crop production and their quality. Another corollary of the aforesaid is that while nitrogen use is developing, phosphate and potash are stagnant:

− N use has increased by about 25 per cent in the last 5 years (2004-05 to 2009-10).

− P use on the other has slightly decreased during this period instead of a desired increasing trend.

− K use abysmally decreased from 32.51 thousand tonnes in 2004-05 to 23.76 thousand tonnes in 2009-10, and the current level during 2010-11 is 32.00 thousand tonnes which is at the level of 5 years ago. In 1986-88 potash use was more than 40 thousand tonnes. This should be a matter of special concern.

The issues requiring attention

1. Fertilizer being a vital component of farm production technology is under great stress. Not only input prices are increasing – although output prices are also being fairly raised – the use of fertilizer is not efficient. Besides, fertilizer is in short supply.

2. To promote nutrient efficiency and improve nutrient ratio there is an urgent need to not only promote P and K but also to introduced new techniques such as fertigation in order to save both on water and nutrient use. Potash needs special mention.

3. Another thing recently cropping up is the American objections against calcium ammonium nitrate (CAN), which is produced as by-product of nitro-phosphate (NP). Some of the US reports point out that CAN finds its way into making bombs to kill precious lives of human beings by the terrorists. Obviously the use of CAN has to be regulated and monitored.

Muhammad Tahir Saleem is the former Chief / Project Director NFDC, former CIDA Coordinator of

Potash development project and current Editor of Farming Outlook

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Annex-1 Historical data on fertilizer offtake by nutrients

(‘000 tonnes) Year Nitrogen Phosphate Potash NPK 1952-53 1.0 0.00 0.00 1.00 1953-54 14.8 0.00 0.00 14.80 1954-55 14.1 0.00 0.00 14.10 1955-56 6.6 0.00 0.00 6.60 1956-57 9.0 0.00 0.00 9.00 1957-58 16.4 0.00 0.00 16.40 1958-59 18.0 0.00 0.00 18.00 1959-60 19.3 0.10 0.00 19.40 1960-61 31.00 0.40 0.00 31.40 1961-62 37.00 0.50 0.00 37.50 1962-63 40.00 0.20 0.00 40.20 1963-64 68.00 0.70 0.00 68.70 1964-65 85.00 2.20 0.00 87.20 1965-66 69.83 1.22 0.00 71.05 1-66-67 112.76 3.89 0.12 116.77 1967-68 176.17 12.16 0.25 188.58 1968-69 205.21 39.47 2.23 246.91 1969-70 273.95 36.64 1.34 311.93 1970-71 251.52 30.45 1.24 283.21 1971-72 343.97 37.23 0.74 381.94 1972-73 386.39 48.73 1.38 436.50 1973-74 341.93 58.08 2.67 402.68 1974-75 362.83 60.57 2.09 425.49 1975-76 441.60 103.61 2.91 548.12 1976-77 510.99 117.94 2.36 631.29 1977-78 549.93 156.33 5.98 712.24 1978-79 684.28 187.96 7.58 879.82 1979-80 805.99 228.46 9.60 1044.05 1980-81 842.93 226.90 9.63 1079.46 1981-82 830.55 225.19 21.74 1077.48 1982-83 952.66 265.26 25.65 1243.57 1983-84 914.30 259.80 28.48 1202.58 1984-85 934.85 293.91 24.68 1253.44 1985-86 1128.14 349.78 33.21 1511.13 1986-87 1332.50 408.87 42.51 1783.88 1987-88 1281.65 393.45 45.12 1720.22 1988-89 1324.83 390.61 24.53 1739.97 1989-90 1467.87 382.45 40.07 1890.39 1990-91 1471.64 388.50 32.76 1892.90 1991-92 1462.62 398.01 23.30 1883.93 1992-93 1635.36 488.20 24.06 2147.63 1993-94 1659.35 464.26 23.17 2146.78 1994-95 1738.10 428.41 16.55 2183.06 1995-96 1990.85 494.45 29.67 2514.97 1996-97 1985.08 419.47 8.43 2412.98 1997-98 2075.10 550.92 20.03 2646.05 1998-99 2096.98 465.00 21.28 2583.26 1999-00 2217.77 597.16 18.50 2833.42 2000-01 2264.23 675.76 23.06 2963.05 2001-02 2285.30 624.54 18.75 2928.60 2002-03 2349.11 650.16 20.49 3019.76 2003-04 2526.73 673.46 21.79 3221.98 2004-05 2796.42 865.11 32.51 3694.04 2005-06 2926.62 850.53 27.04 3804.19 2006-07 2649.73 978.76 43.11 3671.61 2007-08 2924.61 629.70 26.92 3581.22 2008-09 3034.91 651.16 25.25 3711.33 2009-10 3476.29 860.44 23.76 4360.49 2010-11 3134.00 767.00 32.00 3933.00

Source: National Fertilizer Development Centre

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Annex-2 Historical data on local production and imports

('000 tonnes)

Year Local production Imported supplies N P2O5 K2O Total N P2O5 K2O Total

1958-59 7.5 0.4 0 7.9 18.3 0 0 18.3 1959-60 8.9 0.2 0 9.0 10.8 0 75.0 85.8 1960-61 9.8 1.6 0 11.4 35.9 0 25.0 60.9 1961-62 13.6 1.4 0 15.0 40.2 0 0 40.2 1962-63 40.0 1.1 0 41.0 0 0 0 0 1963-64 43.8 1.2 0 45.0 5.1 0 0 5.1 1964-65 46.6 1.5 0 48.1 3.2 0 0 3.2 1965-66 46.0 1.4 0 47.4 36.1 0 0 36.1 1966-67 50.5 0.7 0 51.2 106.4 16.4 0.6 123.4 1967-68 49.7 2.9 0 52.5 103.7 49.8 0 153.5 1968-69 78.6 2.5 0 81.2 118.1 32.6 5.7 156.4 1969-70 129.3 4.2 0 133.4 292.2 11.5 0 303.7 1970-71 140.1 4.5 0 144.7 107.8 38.6 5.0 151.4 1971-72 215.1 4.9 0 220.0 73.0 0 0 73.0 1972-73 274.5 8.2 0 282.8 115.6 72.1 0 187.7 1973-74 300.1 4.2 0 304.3 225.0 104.3 6.3 335.6 1974-75 296.3 10.6 0 307.0 106.5 26.1 0.8 133.3 1975-76 316.5 10.6 0 327.1 73.5 109.2 0 182.7 1976-77 309.3 11.9 0 321.2 137.1 140.1 2.5 279.6 1977-78 312.5 15.0 0 327.5 341.8 204.8 2.1 548.7 1978-79 334.0 27.0 0 361.0 443.9 205.6 9.9 659.4 1979-80 388.9 49.8 0 438.6 440.8 142.4 13.8 596.9 1980-81 579.7 57.7 0 637.4 386.7 302.3 22.0 711.0 1981-82 699.2 66.9 0 766.1 88.8 28.5 15.6 132.8 1982-83 987.3 71.3 0 1058.6 133.3 249.3 21.5 404.1 1983-84 1015.3 91.8 0 1107.1 79.4 189.1 27.2 295.7 1984-85 1028.7 90.0 0 1118.7 86.5 233.1 21.3 340.9 1985-86 1041.7 93.3 0 1135.0 66.3 159.3 40.3 266.0 1986-87 1120.1 93.3 0 1213.3 210.2 354.0 46.2 610.4 1987-88 1097.1 95.2 0 1192.3 204.6 295.8 57.1 557.6 1988-89 1113.8 100.5 0 1214.3 134.2 317.5 9.4 461.1 1989-90 1156.4 105.1 0 1261.5 285.5 262.9 41.5 590.0 1990-91 1119.8 104.6 0 1224.4 360.6 252.9 54.6 668.1 1991-92 1043.8 105.5 0 1149.3 369.9 269.8 10.1 649.7 1992-93 1227.3 104.8 0 1332.1 409.6 388.9 14.9 813.5 1993-94 1565.9 92.9 0 1658.9 310.5 540.9 33.5 884.9 1994-95 1544.1 92.1 0 1636.2 87.7 258.4 12.8 358.8 1995-96 1693.4 96.1 0 1789.5 297.9 397.2 39.0 734.1 1996-97 1681.5 80.7 0 1762.2 472.9 381.0 24.3 878.1 1997-98 1660.5 67.5 0 1728.0 296.2 431.1 11.1 738.4 1998-99 1795.2 90.7 0 1885.9 424.4 430.3 5.0 859.7 1999-00 2039.6 223.5 0 2263.2 233.0 416.1 13.8 662.8 2000-01 2053.8 243.8 0.4 2298.1 194.0 368.6 16.5 579.1 2001-02 2113.9 142.7 8.9 2285.5 178.5 429.5 17.7 625.7 2002-03 2192.4 111.1 11.5 2315.0 215.7 542.4 7.9 766.1 2003-04 2272.5 253.9 12.9 2539.3 204.2 553.5 6.4 764.1 2004-05 2373.1 324.8 20.1 2717.9 309.7 458.1 16.9 784.7 2005-06 2476.0 341.4 14.7 2832.2 603.4 639.8 25.1 1268.3 2006-07 2426.7 307.9 11.9 2746.5 307.6 476.2 12.1 796.0 2007-08 2513.0 293.6 15.5 2822.0 286.6 565.8 23.9 876.3 2008-09 2532.0 364.0 10.0 2907.0 457.0 112.0 0.04 1143.0 2009-10 2669.0 403.0 10.0 3082.0 901.0 522.0 21.0 1444.0 2010-11 2642.0 423.0 12.0 3076.0 383.0 244.0 18.0 645.0 Note: Imported Supply is that amount of fertilizer which has been despatched from the port and may not tally with imports on arrival.

Page 17: 120219105842_4_4_paper

Annex-3 Historical development of fertilizer production capacity in Pakistan

‘000 tonnes

Year Company Location Product Original capacity

Production capacity (June, 2011) Product N P2O5 K2O

1957 LCFL Faisalabad1 SSP 22 90 - 15 -

1958 Pak American Mianwali2 AS 50 - - - -

1962 Pakarab: Fatima–(NFC) Multan Urea3 58 120 55 - -

AN 103 - - - - 1968 Engro (Exxon) Dharki Urea4 173 2150 989 - -

1971 DHL Sheikhupura Urea 348 445 205 - -

1979 Pakarab: Fatima Multan NP 304 350 81 81 -

CAN5 450 340 88 - - 1980 FFC: (NFC– PSFL) Mathelo Urea 554 718 330 - -

1982 Shan: NFC–PCFL Haripur Urea 96 - - - -

1982 FFC Goth Machhi Urea6 570 1330 612

1989 Agritech (NFC –PCFL) Haripur SSP 90 85 - 14 -

1998 Agritech (NFC)7 Daud Khel Urea 350 346 159 - -

1998 Fauji Jordan (FJFC) Port Qasim DAP 446 670 121 308 - Urea 551 645 297 - -

2001 Engro (EFL) Port Qasim NPK 100 100 13 18 15

2005 Engro (EFL) Port Qasim NP 40 40 9 9 -

2009 Suraj Fertilizer Sahiwal SSP 150 150 - 27 -

2010 Fatima Fertilizer Ltd Rahimyar Khan Urea 500 500 230 - - CAN 340 340 88 - -

2011 Fatima Fertilizer Ltd Rahimyar Khan NP 350 350 81 81 -

Sources: Information collated from various sources, among them:

1. Pakistan Fertilizer, Chemonics International and Asianics, 1992. 2. Fertilizer Policy in Pakistan, NFDC, 1999 3. Latest NFDC reports on current production capacity.

1 Originally the SSP plant setup at Faisalabad with a small capacity of 3 – 4 thousand tonnes of P2O5, and later on another SSP plant was established at Jaranwala in 1976 with a capacity of 15 thousand tonnes of P2O5. 2 Originally it was ammonium sulphate (AS) plant setup at Daud Khel with an annual capacity of 50 thousand tonnes, expanded to 90 thousand tonnes in 1968, and later on converted in 1998 to urea production. 3 It was expanded in 1978 to 73 and 1986 to 100 thousand tonnes. 4 The capacity was expanded in 1989 to 268, in 1993 to 598, in 1995 to 750 and in 1998 to 850 thousand tonnes. 5 Originally in 1962 it was ammonium nitrate plant with 103 thousand tonnes capacity which was converted in November, 1978 to calcium ammonium nitrate (CAN) with 450 thousand tonnes capacity. 6 Expanded in 1992 to 695 thousand tonnes 7 Agritech acquired Daud Khel plant from NFC in 2006, and Haripur plant in 2008.