Federal Minister Industries and Production Rana Tanveer Hussain on Tuesday said urea fertilizer companies are making a 30 percent profit, higher than any other sector.
Chairman Committee Aoun Abbas complained of low demand for urea and the difficult situation faced by farmers to which the minister argued that urea companies’ profits will be reduced from 30 percent to 20 percent to avoid fertilizer shortages and reduce pressure on farmers.
Briefing the Senate Standing Committee on Industries and Production today, the minister said this year’s urea production has improved in excess of 400,000 metric tons but the government has decided to import 100,000 tons more this year, despite its high cost. The price of imported urea is around Rs. 5,800 per bag, with handling and transport costs bringing the total to Rs. 7,000 per bag.
The committee also received a briefing from the Small and Medium Enterprise Authority (SMEDA), which outlined its Rs 368 million budget for 2024 and more plans for a new Rs. 5 billion fund.
Officials said SMEs contribute significantly to the economy, with a 40 percent share of GDP and 78 percent of national employment. They added that SMEDA is focused on enhancing small businesses through training, financing, and connecting small brands with larger ones.
Meanwhile, discussions included ways to reduce the wastage of fruits and vegetables by setting up dehydration plants and improving exports. Rana Tanveer Hussain emphasized the need for a comprehensive system to support agriculture and SMEs effectively.