Pakistan’s National Fertilizer Corporation poised for privatization

The National Fertilizer Corporation (NFC), once a cornerstone of Pakistan’s fertilizer production, is set to be put up for sale as part of the government’s broader initiative to privatize or close certain state-owned enterprises. This move, orchestrated by Pakistan’s Ministry of Industries and Production, aims to increase operational efficiency by discontinuing underperforming entities.

The decision to potentially privatize NFC was revealed during a recent briefing to the Senate Standing Committee on Industries and Production, which is chaired by Senator Aon Abbas Bappi and was addressed by Minister Rana Tanveer Hussain. The ministry’s evaluation includes 16 organizations, among them significant entities like the Pakistan Automobile Corporation (PACO) and the National Productivity Organization (NPO).

Historically, between 1992 and 2008, all of NFC’s fertilizer manufacturing units were privatized under the Government of Pakistan’s privatization policy, managed by the Privatization Commission. This included several major facilities across the country such as Pakarab Fertilizers in Multan and Lyallpur Chemicals & Fertilizers in Jaranwala. Currently, NFC does not own any fertilizer production plants and has shifted its focus to selling imported urea.

NFC maintains a robust presence in the fertilizer market through its subsidiary, National Fertilizer Marketing Limited, based in Lahore. This company manages an extensive dealer network across Pakistan and operates six bulk storage facilities with a combined capacity of 115,000 metric tonnes. It is also tasked with the distribution of urea imported by the Pakistan Trading Corporation, playing a vital role in supporting the agricultural sector by promoting fertilizer usage, as per the company’s website.