SHARE
Additional information:
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 regulator.
Short Summary:
Fertilizers are one of the key inputs in crop production and contribute around 30 to 50 percent in enhancing crop yields. They are essential for obtaining optimal output from high yielding seed varieties and to maintain soil fertility. However, there are certain factors that 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 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.
