no change. The promise was that a farmer should not have to travel more than 10-12 Kms to get his fertilizer supplies. Phosphorous Fertilizer Pakistani lands are also deficient in phosphorous. Unfortunately, upto 40 of the water is lost through seepage in canals and distributors, and by inefficient use. This reduces supplier power for the company. The annual rainfall in Pakistan varies from less than 100 mm in Sindh to more than 750 mm in the foothills and northern mountains.
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Problems in the agriculture sector, our agricultural land is facing many problems and some of the major problems are: The conversion of arable land into non-agricultural uses. Our current NPK consumption ratio is a pathetic.8:1:0.04. This has resulted in severe water shortage crisis at a time when the Kharif sowing season has just begun. In 1991 the government initiated a fertilizer policy which granted special incentives for setting up new projects and expansions. To prove that there was an obvious involvement of corruption and kickbacks, we present the following case study Engro Chemical was established in 1968 at a cost of 43 million with a capacity of 173,000 tons. DAP has shown high growth in the past. With the prices of fertiliser rising each year and the cost of fertiliser being almost 50 of the total farm input costs, it is not surprising to note that 2/3 rds of the credit given to the farmers is being used for fertilisers. Given the above scenario that entails higher local prices and bleak international scenario, the Pakistani fertilizer industry is highly un-competitive at the international level.
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