Pakarab Fertilizers Chairman's Message

Pakarab Fertilizers Limited plans to revamp and expand its existing fertilizer manufacturing capacity by making an investment of approximately PKR 22.000 billion.

On behalf of the Board of Directors of Pakarab Fertilizers Limited, I am pleased to welcome you to the Company's website.

Company Performance

The year 2014 was another difficult year for fertilizer manufacturers that are supplied gas through the SNGPL network.

Pakarab Fertilizers was operated for 42 days each year over the past two years. Given this level of gas supply, production targets could not be met. The Production of CAN, NP and Urea as a percentage of annual designed capacity remained 12.32%, 14.67% and 5.35% respectively.

The Management adopted various measures for sustainable cash flows of the business. The Company sold 151,751 MT of imported DAP during the year-2014 which contributed significantly in supplementing cash flow of the Company.

Future Outlook

Pakarab Fertilizers is continuously engaged with the Ministry of Petroleum & Natural Resources for fair allocation of gas amongst the fertilizer industry on SNGPL network. In this regard various initiatives have also been undertaken by the Industry and Government. Given the Government's positive intentions to resolve the economic turmoil facing the country, measures to resolve the problems of the fertilizer industry were also undertaken. These measures include exploring the possibilities of allocating gas from dedicated fields to the fertilizer industry. The management is also working on other projects to improve the bottom-line including toll manufacturing of SSP. Initiated in 2013, DAP sales were increased from 51,000 MT in 2013 to 151,000 MT in 2014. A further 33% increase has been targeted for 2015 (200,000 MT).

Muhammad Arif Habib
Chairman
Pakarab Fertilizers Limited

Page Last Updated: Friday, April 29, 2016