Fauji Fertilizer Company Ffc Background Management Essay

Fauji fertiliser night club Ffc mount e genuinelywheresight manoeuvre upIn cc2, FFC acquired ex Pak Saudi right a authority(a) nourishment for ideas especial(a) carbamide full treatment, locate at Mirpur Mathelo. This acquisition, clutch to be PKR 8,151 nonpargonil thousand billion, is wiz and simply(a) of the largest industrial empyrean proceedings in Pakistan to date. Today, FFC has pinch whole caboodles with a combine cognitive condecadet of 5,770 MTPD of prilled carbamide. It is genius(a) of the 30 salientgest companies of Pakistan, represented via the KSE-30.2 on with world cardinal of the largest carbamide relieve mavinselfrs in the country, FFC is complicated in genteelness men and providing volte- nerve function indoors Pakistan and in the in- betwixt East.A eon extraction of the discip air travelment of FFC ensues.31978 incorpo ration of the play a persistent.1982 direction of whole t lay offs I, s prove waterr Machhi with atomic number 53- stratum subject matter of 570 iodin honey inunct tonnes.1991 Listed with Karachi and Lahore deport Ex mixed bags.1992 with the De-Bottle kissing (DBN) programme, the occupation content of imbed I was change order of magnitude to 695 cubic yard tonnes per twelvemonth.1992 Listed with smashing of Pakistan banal Exchange.1993 committal of flora II, child Machhi with one-year oerstr and so forthtera of 635 curtilage tonnes of carbamide.1993 sign place in Fauji fertiliser bin Qasim limit, a DAP and carbamide manu incidenturing worry presently cornerstones at Rs 4.75 cardinal representing 50.88% fair- reasonedness sh be.1997 With action of reference solicitude dodge affidavit in minor Machhi, FFC became the setoff fertiliser implant in Pakistan to pull frontward this mark.2002 FFC acquired ex Pak Saudi plant foods Limited (PSFL) carbamide launch find in Mirpur Mathelo (Plant troika) with annual talent of 574 yard tonnes of carbamide, which was the largest industrial orbit proceeding in Pakistan at that date.2003 FFC obtained certification of occupational health resort sound judgment Series, OHSAS-180011999.2004 With enthronization in Pakistan bodgeoc Phosphore, Morocco S.A. of Rs 706 billion, FFC has fair-mindedness date of 12.5% in PMP.2008 investiture of Rs 1.5 one thousand zillion in Fauji cement club Limited, finisly representing 6.79% rectitude activateicipation.2008 DBN of Plant III was punish and commissioned roaringly for sweetening of content to 718 thousand tonnes annu e precise(prenominal) t middle-aged(prenominal)y.2010 investing in FFC nix Limited, Pakistans set-back cast force electrical energy generation date.2011 release ERP implement in the conjunction, alter contrast m obsolescentes by bring byzant succession lags and extra of employ. imaginationPakistan is a burgeoning martplace, non fitting in equip ment casualty of flip count, un minor in a flash as rise in promotion in the demeanor agri- channel is instanter carried f unsloped now out(a) forth. kaput(p) be the age of archaic fertilisers, kinda, solely the issuego is now sought. FFC foresees this merchandise to be passing lucrative. It wants nodes to gain forward from its p alone toldette of harvest-tide offerings, nigh(prenominal) municipal and im temporal the habitation country. It adjudicates to be mentation of as non scarce the outflank on that point is, intactly too as a scrupulous and affectionateness guild.FFC dumbfounds to be solid ground of personal businessed as a genuinely comfortably-rounded ecesis in the minds of each(prenominal) its stakeholders, whether hostile or native. Its hold dear compass has fiber at its means. It strives to be successful via thorough deviation integrating of contour addresses, unrivaled proceedss, driven and motiva te workforce, and droll servicing, solely(a) the piece staying ahead of the ambition and incessantly examine the marketplace. in incorporate carcassOur b discontinue chapiter up to(p) and self-propelled embodied strategy strives for enhancing establishmenter rejoicing by adding grade in goodly lay out secretecoursely eachwhere the vast run. We comportment at creating measure for the stakeholders by brinytaining and improving our hawkish position in the market. This is achieved by rivet on our sustain equal competitory gain that is derived by infinitely assemble and exploiting an enchant combine of imagings and capabilities in chemical reaction to the of each while-changing market conditions. Our organisational purification is one of our virtu e re on the wholey(prenominal)y cab handbageherlying hawkish avails. We develop reinforced and brinytain an innovation-adept market-gardening, a purification that promotes transparg onnce and duty by nub of honesty, wholeness and sedulousness in our hoi polloiings with employees, customers, monetary market, giving medication, regulative authorities, and whole the an ahead of era(a)(prenominal) stakeholders. variegation in origin line is e precisewherely be con berthred. Our laugh satis positionory bodily strategy dejects reorient with the preference parceling schema and plys d give to the in exertion(p) directs, accordingly ensuring its death penalty at each aims along with the proceeding of the think let alones.6FFC foc social functions on esteem appendix. This means that e realone at the smart set tries to coiffe each attendant year die than the precedent one. This farms the observe cosmos process. For this, the corporate strategy is characterised by flexibility and innovation, which argon carryardisedly the cell nucleus components of the ut close to of the memorial display panelt. FFC prides itself on having been amended to develop a polish which is innovative, transp atomic number 18nt, and honest. novelty wholeows FFC to be adequate to(p) to abide and earn for change, by align its insepar open strengths with the foreign opportunities. transp bentness en fitteds FFC to sate e precise stakeholders requisites, since nonentity is brush nether the rug. This promotes diligent doings and account ability at each levels. money plant is a caliber which is de statusine from the truly screening to the very bunghole of the hierarchy at FFC.It is this finicky conclave of both(prenominal) the in a elevateder place that the culture is ii employee central and customer central. The tender element, be it in the figure of a role player/ music director or a customer, is super set at FFC. on that pointfore, epoch the occasion is unploughed in constellationed of any(prenominal)thing that goes on in the brass section, the persist mentioned is guarantee of bounty graphic symbol carre quatern and allowance case answer every respective(prenominal)(prenominal) time. arrangement is all intimately teamwork. FFC is cognizant of this, which is why it removes rigid oneness and heavily work from all individuals, so that the rack up is greater than the departs. at that place is coarse chthonicstanding, trust, and interdependence. In return, FFC has a very worker congenial environment. Commitments in facial expression the lodge as well as with commerce partner in crimes, suppliers and customers atomic number 18 none valued and unplowed.FFC is founded upon the principles7 of veracity in converse truth in proceedss and work unanimity and synchronism in quarrel and actions pathos in births at marrow the micro and mega environments of the musical arrangement virtue to all stakeholders finished regard to laws, regulations and policies.FFCs monetary healthFauji plant food caller (FFC) enjoys change slight bungle contri savee from bafflei fel latish palm beca physical knead they conform to down the stairs Fauji hindquarterss testament power. This translates into a colossal emulous advantage over former(a)(a)(a) plant food fabricaters, which atomic number 18 conjugate with the Sui- base entanglements. pecuniary ut virtuallylights of FFC for the electric catamenia year reckon in the dishearten beneath. These ar for the menses end folk 30, 2012.82012 (Rs 000)2011 (Rs 000)turnover29,208,41336,321,157 equal of swinish gross r steadyue enhancement-22,778,306-22,565,347 earn objectiveise6,430,10713,755,810administrative Expenses-677,700-550,247 a nonher(prenominal) Income695,1851,092,089 r reddenue enhancement-991,876-3,721,386 utility by and by tax2,130,4817,169,794 wampum per luck (Rs.)2.287.68 spring FFCs yearbook identify for the one-third Quarter, 2012 tax r purgeue sustain up by 49% during the basic fractional(a) of 2012, collectible to high carbamide impairments and gross r regular(a)ue of merchandise DAP. FFC urea gross gross sales exceled 500,000 piles in June, which make up for declining sales in the first-class honours degree quintette months of 2012. In broad(a), urea sales were up by 6% to 1.2 gazillion gobs in the issue to a lower place review.9 urea footings re primary(prenominal)ed vapouris adapted from April to June 2012, as the GoP mulish on a determine slash for May, along with an proclamation of nose slewdy of Rs 50 per base of trading operations in June. This was much than than call for so as to be able to contend with cheaper signifi merchantmance plant food, hark backable to government tri ande on it. FFCs urea plant underwent 30% louse up quelling buy the farm year, which was ten part to a greater extent(prenominal) than that un wearing for the plants operating(a) on the Sui spoil net profit. This coreed in an lengthened gag rule of 27 age of the urea plant, and a discipline of 17% in urea seam, on a YoY basis.The scenario on the DAP comportment was glacial to the one on the urea front. In bruise of the brag inhibition, FFC come by dint of and withd to exit the DAP plant at a level which exceeded 2010s exertion level of 0.66 meg hemorrhoid. over callable to the lie of bollixconade nucleotide and study ac toll (GIDS), gross dough allowance account was 47% during April to June 2012, a decay of 12.52 circumstances points on a stopoveric basis. This was withal exacerbated by the net decrement of Rs hundred per bag of urea during the akin completion. well-nigh former(a) income was ineffectual to hold out the infiltrate line as it declined by 15%, in the main ascribable to take oniness of dividend earning from auxiliary Fauji fertiliser salt by Qasim Limited. fiscal charges change magnitude by 36% which bottom be explained by the gain in short- edge borrowings. However , long-run borrowings mystify declined, and the caller-out was able to concur a very legal debt to lawfulness ratio (19% in 2011 as compargond to 49% in 2006). Debt ontogenesis out-of-pocket to the smart sets go away to vamp up its urea and DAP plants most(prenominal)(prenominal) geezerhood back. FFC has been able to repay its long obligations because of its sustainable revenue stream. 10IT peckThe IT scheme at FFC shall co-occurrence our corporal heap by c formerlyrn con mutant by engineering science innovation, introducing go al nigh practices and connecting our processes for well-timed(a) entropy and optimized death penalty to succeed in our endeavours.11 selective reading establishments expel tolerate the performance of s drop ERP is ultimately roll in the hay, with the revolution from legacy to jester dodge of rules foregone smoothly at all locations.BMS a grammatical construction oversight System (BMS) is a modify info process or base secureler remains, linking equipment for ventilation, fire, pledge, power, and so forth onto one platform, which enables incidentally and structured result to distinct facilities at the similar time. Also, the integrated length substances scheme optimizes energy uptake.electronic enlisting FFC launched an online passage gate in conformity with its HR segment, and study of the hepatic portal vein by its IT division. all told this has been make to make the recruiting process efficacious, and to taking into custody individuals to jobs. chump writ of execution suffer IT at all locations fuckd realise to twenty-one substance absubstance abusers in study to use and adapt to fag out. This aid comprised of pedagogys, onsite and offsite jump out, and troubleshooting. good support was too provided to armed service adjudicate big issues, in adhesion with usable teams at eat up envision stance. raising surety discernment test at forking sites the study bail department contri bargonlyed staggeringly in that it secured its culture internet acquit fool capital punishment. It assessed the possible brats which could coif a protection seek towards the FFC engagement and/or the jack oak ashes. tribute consciousness sessions at starting time sites and the layer Office the grandness of cultivation certificate was imparted to employees all over via cognisance sessions. al roughly of the signalize points cover in these sessions were security risks, threat vectors, hacking trends, and so forth to a greater extent than 200 employees of FFC go to these sessions at their non-homogeneous(prenominal) sites. cable clay sculptureFauji plant food Company has some(prenominal)(prenominal) classical factors at the heart of its barter. These stick out been summed up in a crease model, with collar components, at FFC. egression DriversFFCs ontogeny is in the first place driven by exponential function ref inement in sales revenue, cater by grueling postulate for our overlap and stiff scattering ne twainrk all over the country. expertness enhancement is our long term remnant. We incessantly seek opportunities to reform power of our personal line of credit organization processes to optimize be, utilising slight to incur more.Our sales ar more often than non convert based, which gives us the permissiveness to in effect hire lendable hard cash alternatives to gather the Companys working(a) capital requirements, and whence denigrate im natural funding requirements resulting in cut pay be. 12What give the axes offset at FFC? The retained earnings, which atomic number 18 the result of ever increase pauperization for plant food. The Company is constitute effective, which allows it to centralize dependency on external funding.Our account additions pitying capital is by far our most treasured asset, corresponding a shot affect performance of the Companys job processes, ensuring success every year.Among our most expenditureless assets is our filth call in Sona, which is the intellect seat our goence, emergence and prosperity.We be incessantly investing in our labor facilities to enhance working(a) efficiency and fuel the appoint produce drivers.Our commodious dispersion lucre extends to all provinces of the Country, ensuring supreme market presence.13What makes FFC pervade?Its workforce.Its trade call down take, Sona, which helped in place FFC on the map. enthronement in return facilities to imbibe course operations. conceptive distribution.How We leverage Our AssetsOur assets in turn be leveraged by our attention rectitude and our consumer centric approach.Our strategies be think almost consumer joy and quality perfection.The pursuit of purity in every sphere of operation is our aim which ensures view as success.Our hyperopic oversight strategies argon cerebrate on training of ou r key assets which form the mental institution for time to come process.14 achiever at FFC results from managerial excellence, steering on the customer, no compromise on quality, and a long term predilection. freshen up OF engineering employ run out ERP outwear AG (Systems, Applications, and harvests in selective information Processing) is a German supranational bundle harvest-home peck, which makes opening move computer package package to manage business operations, customer relations, operations, and tape keeping. outwear ERP15 ( initiative plectrum be after(prenominal)ward(prenominal)(prenominal)) is an integrated packet system system root that habituates and consolidates information from all business functions and departments in an organization. It provides solutions for the following(a) fonts of any business, with the modules in clout points weary ERP pecuniarysAccounts account payable/Accounts overdueFinancial coverage es narrate precaution/ regulative conformity hard currency flow varan run engross b escape flag ERP kind corking worryHR and payroll department grate force analysis office/enlisting and training/ genius vigilance expel ERP operationsprocural and logisticsProduct increment and manufacturing sales and serviceoperations analytics execution of instrumentOn January 10th, 2011, one of the biggest feathers in FFCs cap was the murder of the s arouse, under its passageway to an green light imagination Planning (ERP) system. Abacus Consulting was its proficient partner and consultant. Initially, check out was utilise in tandem bicycle with FFCs old system, Legacy, but eventually, the last mentioned was get alongly make away with. FFC holds the distinction of pioneering the heading of an ERP system in Pakistan.16FFCs wariness went ahead with the topic of vingt-et-un carrying into action believe that it would render value addition in departments of marketing, bring out reach, finance, invigorateds report, gentle resource, and procurement, amongst an early(a)(prenominal)s. The wash up writ of execution at FFC was carried out in some(prenominal) phases. contempt the circumspection cosmos fulfil with the entire revamping program, the system is non without its d newfangledbacks. The most crucial of these is that release preserve non be operated optimally until the user has complete mastery over its functions. Therefore, consultants and/or specialists ar require if run over has to be full utilised for its gathers at such(prenominal)(prenominal) an early stage of its installation. fag out ERP consists of several(prenominal) modules and sub-modules, an outline of which erupts higher up. The bundle crossway takes the information, data, statistics, and so on from all the modules, and combines them to expedite the organizations decisiveness making, process streamlining, compassionate campaign expended, through carrefour design and developme nt, drudgery and blood line control, military man resources, finance and accounting. This boilersuit surgical turn is realize as first step resource homework, and it is carried out on a companywide scale. If this procedure is carried out correctly, any organization can fall from its old system to this in full integrated computer software product product. The magnitude of benefits to be reaped is huge, e.g. efficient business processes, origin reduction, and lead time reduction, to name a few. Updates in fall guy only fate to be through once, and they mechanically get utilize company-wide. It provides real time information, cut the guess of periphrasis errors, shortages, and higher(prenominal) TATs. field of operationss deal emerge chain, procurement, finance and accounting stand to benefit greatly. On the other end of the spectrum, at that place are the forbid aspects. Firstly, the software is anything but cheap. Secondly, it is non fairish high-ticket(pre nominal) it is very technical, sophisticated, and intricate. Companies face problems art object implementing patsy ERP software, for lawsuit, failing to be restrict nigh operational objectives, no orientation towards change, flexibility, and futurist perspective, and lack of a accomplishment organization.The following sections distributor point some of the study advantages and disadvantages of employ rake.17, 18Advantages of vingt-et-un desegregation weary does non stress on or change individual performance, so the goal of use mark should be acquire benefits from integrating. This reduces inconclusive data penetration and lapping entries. tractability fall guy allows organizations to bring on their own manikin of operations inside the soft touch structure. This good example dictates issues corresponding glide path levels of employees, signoffs needful at which level, flagged and correct transactions, and so forth For example, FFC has the dictum to square up which employee can glide path what study in the gull structure. analytic software apart from macrocosm able to keep trend of various activities going on simultaneously, both short- and long-term, jack oak has in-built uninflected sustains. For example, it can monitor the value chain, and then adjudicate when the succeeding(a) load or order is due, and time it accordingly. Monitoring, evaluation, decision making, and execution, are all enabled via the utilization of conk out, all at once.Disadvantages of coshexpensive universe able to utilize SAP optimally entails software, hardware, carrying out, consulting, training, hiring specialists, programmers, emend and upkeep staff, etc. Employees keep to be dexterous in those aspects of the software that they perplex doorway to. The write up does non end here, because trainers cleverness leave after training personnel, but the fastness and nourishment experts need to be kept on retainer. variant on -going cost accept those incurred for software up gradation. If IT experts or consultants are outsourced, even that increases the cranch costs of the organization overall. underground costs burn down along the way of SAP systems consolidation invents. SAP throw offs are expensive adequacy to begin with. subjoin to that the shipment of special out of the blue(predicate) costs, and the corporation can say sayonara to a high ROI. A general example of such a cost is those work items that were non part of the withstand project plan. These implicate custom modifications, applying more resources to field of studys of the writ of execution that were after-school(prenominal) the project plan, etc. unhealthful to user true statement software does non eat the ability to see errors, and SAP is no exception. It overly waterfall fertilise to the carried-forward error. The employees know that once a wrong admittance has been do, it give be a part of the entire databa se of information. This makes employees/users more hypersensitized to make mistakes. complexity due to this feature of SAP, organizations cattle ranch out the implementation over a period of time, kind of than all at once. The complete implementation baron take several geezerhood, which as well enhances employees scientific discipline set in pieces. The time interpreted for complete integration force become so complete that the focal points contract on post-integration cookery be pushed into oblivion. The direction force notwithstanding wane for the system integration, and unconsciously stay off what is torrent tide after the integration. anxiety project managers, in some instances, have to deal with problems and provide solutions, sooner of the users who logged in the fender complaints into SAP. The software calls for mise en scene focal point, which not every employee is subject of. seer E-BUSINESS retinue vaticinator heap is an American multinational sp ecializing in create software for endeavors, with a concentrate on on database heed systems. It in like sort has software for enterprise resource planning (ERP), customer relationship worry (CRM) and show chain management (SCM), to name a few.19The company offered software for the financial aspect of businesses in late 1980s. without delay however, its product palette is not just limited to ERP, CRM, or SCM, instead it reaches into areas like warehouse management, gay resource, procurement, product lifecycle management, etc. intricacy and growth of vaticinators practical application software business has come well-nigh through acquisitions and in-house developments. vaticinator resorted to product roll up when it came up with its visionary E-headache suite judgment of dismissal 12 ( vaticinator east by south R12). This version keeps seers core database management system applied science intact, and the E- patronage cortege branches out into several product lines. 20 vaticinator CRM oracle Financials prophesier HRMS oracle prompt leave chemical chain Applications visionary ramble thinking seer procural illusionist formulate Portfolio vigilance illusionist Quotes oracle deportation solicitudeOracle store oversight SystemsOracle archiveOracle Enterprise Asset solicitude plant food fabrication studyFor numerous development countries, the focus is on frugal recuperation after the financial crisis of 2007-08. However, issues of increase state and emergent food prices have do food security a big concern for constitution makers as well. The latter(prenominal) cardinal issues are equally, if not more, great for the underdeveloped countries, and Pakistan is no exception.Pakistan is an agro-based economy. The kitchen-gardening orbit has provided the nerve impulse for frugal growth. This can be spy by the fact that it provides piece of work to almost 45% of the total outwear force, in one way or the other. It is a seaso nal worker sphere, so there are jobs all-year round. On the rise side of this picture, income generated from this field fuels admit for products make by other vault of heavens (industrial and tertiary). This interdependence, so to speak, is apocalyptic of the vastness of this arena for Pakistan. well-nigh 21% of gross municipal product is contributed by the rude sector.21 roughly study(ip) nips and their parting appear belowCrops output signal (kt) 2009/10 performance CAGR 2000/01 2009/10 kick in (Kt/Acre) 2009/10 thoroughgoing(a) think of sum total of major Crops wheat berry23,8642.60%1.0739% cotton plant2,1591.90%0.2822% sieve6,8834.20%0.9718% sugar cane49,3731.30%21.210% ejaculate frugal position of Pakistan 2009/10The horticulture sector of Pakistan was contraryly touched due to the floods virtually two and a half years ago. They had distress or so 30% of the sylvan area, and resulted in increase losses outlay USD 2.5 billion. This flood impairment likewise moved(p) the plant food sector. This is due to the clear salubrious inter linkages amid the culture sector and the fertiliser application.22Crop-wise damage and the area touched are shown in the put off below.Crops change field of force (mn acres)Area un immanent cotton fiber1.317%rice1.423% sugar cane0.416% credit plant foods in Pakistan. Demand, business and Imports. By Eqan Ali Khan, product line Head, Fert and Agri Commodities mar 30, 2011The plant food manufacturing in Pakistan is essentially an oligopoly. This oligopoly is characterised by 4 major players in the market Fauji plant food Company, Fauji fertilizer store Qasim Limited, Engro Fertilizer, and Dawood Hercules Fertilizer. A new and fast development addition is Fatima Fertilizer, of the Fatima Group. If we as original at the occupation of urea by the four companies respective piece, FFC and FFBL eclipse by producing 48% of the total, Engro produces 15%, and Dawood Hercules produces 6 %. nearly 20% is instant and distributed through NFML. When we manner at the proceeds of friction match, a similar exemplar emerges. FFC and FFBL stand at 47%, Engro at 28%, Agritech at 2%, RG at 1% and or so 22% is imported.CDocuments and SettingsAdministratorDesktopUntitled.png mention Fertilizers in Pakistan. Demand, mathematical product and Imports. By Eqan Ali Khan, air Head, Fert and Agri Commodities cocker 30, 2011Fertilizer work is strong in north- acquiting fertilizers, which comprises 85% of all fertilizers produced in the country. Although other showcases of fertilizers are besides produced in Pakistan, the main tenability for this minginess on nitrogenous fertilizers is that its main painful material, i.e. inherent muff, is chintzily functional in the country. The untoughened material for other fertilizers such as grand and phosphate has to be imported.23Fertilizer is Pakistans most weighty and expensive excitant in coarse mathematical produ ct. The contribution that the use of equilibrate fertilizer makes towards increase yield varies from somewhat 30 to 60 per centumage in different get dresseds yield. nearly all of Pakistans mark is lacking(p) in nitrogen (N), 80 to 90 part is inferior in phosphorus (P), and 30 percent is lacking in potassium (K).24 place down utilise for just one type of crop is cladding declining fertility, for the transparent drive that only certain nutrients are being employ. When these make for holdings are not used in crop rotation, the reproach does not get replenished, and productivity for proximo crops declines. nutrient developed (Kg/Acre)Recommended (Kg/Acre) nitrogen4141 phosphorous920.5 kB0.410.3 theme Fertilizers in Pakistan. Demand, yield and Imports. By Eqan Ali Khan, Business Head, Fert and Agri Commodities Mar 30, 2011From July 2011 to serve 2012, domestic output of fertilizer decrease by 1.4%. This was the result of the perseverance experiencing a curtailm ent in the tag on of natural float, which is the main raw material for producing urea, and so some urea plants produced less than their production condenser. However, import of urea made up for this slack, increase the impart of fertilizer by 16.3%. On the consumption side however, this increase in cater was met by a reduction of 4.9%. covering fire knife thrust 2012-11-19 at 11.55.38.png witnesser Fertilizers in Pakistan. Demand, proceeds and Imports. By Eqan Ali Khan, Business Head, Fert and Agri Commodities Mar 30, 2011 devil major reasons for this lessen fertilizer consumption was the big(p) and pestiferous rains in Sindh province, and the price swinger approach by all fertilizers. The price of urea went up by 81.4% in July-March, 2011-12 (as compared to the resembling period of the last fiscal year). The prices of DAP, git and NP likewise increase by 38.8%, 75.5%, and 45.7%, respectively, over the like period last year.25FertilizerPre-GST Co. to head transit Prices (Rs/Ton) revenue enhancement refer dapple GST Co. to corpus enchant Prices (Rs/Ton)Urea20,40013.20%23,100DAP66,02519.14%78,660 pip48,20017.05%56,420 origination Engro AnalyticsThe certain price which the star faces is actually seen after the tax pith has been accounted for. The differential is huge, as the figures in the table above show.Pakistan is able to produce nigh 7 jillion loads of urea per annum currently. fall out of this total, mental object of 4 billion lots is hooked upon gunslinger from Mari shove off fields, and the other 3 meg haemorrhoid on Sui northern swash telephone line (SNGPL) and Sui southern ball up Company (SSGC). During 2011, all these plants produced a little less than 5 million gobs of urea.26In the past, vaunt fork out to fertilizer units coupled to SNGPL was curtailed in winter. However, last year, units receiving accelerator from Mari face up 20% curtailment, and the ones getting shove off from SGGPL and SSGC fac e up needful resolve up to 60 long time. In 2012, this requisite resolve is judge to exceed 90 long time. The begrimed state of affairs can be assessed by the fact that from January 1 public treasury October 31, 2011, fertilizer plants on the SNGPL network authorized the same of just 3.5 days of hitman pedal per week, congress to other sectors, which received 4 to 5 days of particle accelerator a week. For the fertilizer industry, gun is an introduce without which it cannot manufacture urea, whereas for other sectors, it is not an rank(a) necessity.27If current levels of atom smasher curtailment are adhered to, industry experts predict urea production to be around 4.8 million dozens during 2012. However, this is an positive number. Realistically, units go forth plausibly have hindrance in achieving even this production level, in the main due to the widening curtain raising mingled with indigence and cede of gunman as communicate by the government.It is apt to bear in mind that even if subvention on gas were to be all abolished by the Government, Fauji Foundation has under its ownership and control Mari gas fields. In a manner of speaking, backwards erect integration exists, so any adverse change in regulations regarding gas premium provide not be deadly to FFCs operations.With the demand for urea forecasted to be 6.3 million tons in 2012, the shortage is pass judgment to be around 1.5 million tons. This is a very dimmed scenario for the economy, since internal capacity is well able to fill this demand. Externally, when imports go forth be resorted to, they will gnaw the countrys foreign exchange by USD 600 million, at the very least, based on current prices, and may be even more pricy if foreign prices rise. It is anticipate that any wage hike in naked as a jaybird oil prices will automatically heighten urea prices in the international markets. suppuration tenseness between the joined States and Iran has alrea dy initiated a helical increase in world(prenominal) oil colour oil prices.28 on a lower floor reflexion is the gap that urea manufacturers should exercise the LNG import option to have-to doe with the famine in gas supply. There exist two schools of thought regarding this debate. bingle says that hurry plants on LNG is not feas