Pakistan Fertilizers See Remarkable Surge: Urea Sales Soar by 46% in August 2025

Islamabad: Pakistan’s fertilizer industry witnessed a significant upturn in August 2025, with urea sales surging by an impressive 46% year-on-year and 34% month-on-month. The sales volume reached an estimated 816,000 tons, driven primarily by sustained promotional pricing strategies from select manufacturers, including Engro Fertilizers (EFERT), which offered an average discount of RS269 per bag. Some of these discounts were partially withdrawn at the start of September.

This rise in sales, however, contrasts with the overall downward trajectory observed in the first eight months of 2025, where the total urea offtake declined by 10% year-on-year to 3.77 million tons, attributed to challenging agricultural economic conditions. The inventory levels of urea at the end of August stood at approximately 1.06 million tons, a decrease from 1.23 million tons in July.

Company-specific data reveals that EFERT reported a substantial 71% year-on-year increase in sales, reaching 278,000 tons. Fauji Fertilizer Company (FFC) and FATIMA also experienced growth, recording sales of 323,000 tons and 173,000 tons respectively, marking increases of 29% and 32% year-on-year.

In parallel, the demand for diammonium phosphate (DAP) also saw a significant rise with August sales climbing 41% year-on-year to 125,000 tons. Despite this, the overall DAP offtake for the first eight months of the year was down by 14% compared to the previous year. The DAP inventory at the end of August was approximately 311,000 tons.

Looking ahead, the urea inventory is expected to remain high due to recent flood impacts, with projections suggesting a closing stock of over 1.4 million tons by December 2025.