Pakistan Fertilizer Sees Uptick in Sales Amid Economic Challenges

Lahore: Fertilizer sales in Pakistan showed signs of recovery for the first time in calendar year 2025, according to a recent report by AKD Securities Limited. The resurgence is attributed to the introduction of interest-free loans under the Punjab Kisan Card scheme and anticipatory purchases amid speculation about potential price increases following the budget announcement.

Urea sales saw a 5% year-on-year increase, reaching 418,000 tons. Sales of other fertilizers, including DAP, CAN, and NP, rose significantly by 2.4 times, 2.5 times, and 60% year-on-year, respectively.

The report highlights that EFERT and FATIMA experienced substantial growth in urea sales, with increases of 86% and 3.7 times year-on-year, respectively. This growth was supported by discount offerings and improved product availability. However, FFC’s urea sales declined by 28% year-on-year, affected by a high sales base from the previous year.

Despite the positive sales trend, challenges such as high inventory levels and agricultural stress remain prevalent. The report maintains an “overweight” stance on the fertilizer sector, citing a stable earnings outlook and attractive dividend yields. FFC and ENGROH have been identified as the preferred choices in the sector.

The insights provided by AKD Securities Limited suggest that while the fertilizer market is showing signs of improvement, underlying economic issues continue to pose significant challenges.

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