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Pakistan to purchase a batch of urea fertilizers from Russia — newspaper

The price discovery mechanism will be carried out through tenders, the standard period of which is 45 days

ISLAMABAD, November 20. /TASS/. Pakistan will hold talks with Russia, as well as Azerbaijan and China, for the supply of 200,000 tons of urea fertilizers, due to their acute shortage in the country, the Daily Pakistan newspaper reported.

"Pakistan has approached Azerbaijan, Russia, and China to get 0.2 million tons of urea fertilizer for Rabi season. The proposal presented by the Ministry of Industries and Production gets a green signal from the Public Procurement Regulatory Authority (PPRA) Board and the federal cabinet, and Economic Coordination Committee (ECC) will grant approval for the negotiated price range," the publication wrote citing a source in the Pakistani Ministry of Industries and Production.

According to Daily Pakistan, the Islamic republic is facing an acute shortage of at least 200,000 tons of urea after local factories were temporarily closed for several weeks and demand for these fertilizers increased in December and January. Negotiations with Moscow, Baku and Beijing will be carried out subject to intergovernmental agreements (G2G) and ensuring a price discovery mechanism. Currently, prices for such fertilizers on the world market range from $415 to $420 per metric ton. The cost of their supply may increase given that Pakistan imported urea at a higher price in 2022.

The price discovery mechanism will be carried out through tenders, the standard period of which is 45 days.

Pakistan is facing an acute shortage of urea for growing wheat, its main grain crop, amid a shortage of natural gas, which is the main raw material for the production of urea.

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Pakistan Trade & Cooperation

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