Fertilizer sales in Pakistan rose by 5% in May 2025, with Urea offtakes hitting about 418,000 metric tons. However, despite this increase, total Urea sales for the first five months dropped sharply by 31% compared to last year.
Similarly, DAP (Di-ammonium phosphate) sales jumped to 95,000 metric tons in May, more than double from May 2024. Yet, DAP sales still fell by 21% in the first five months of 2025 compared to the same period last year.
The May rise in fertilizer purchases is largely due to farmers buying early, expecting a possible increase in federal excise duties under the Finance Bill for FY26. Fortunately, the government decided to maintain the current duty structure, easing some pressure on the sector.
Among major producers, Fauji Fertilizer Company (FFC) saw Urea sales drop 28% in May and 36% overall for the first five months. Meanwhile, FFC’s DAP sales in May more than doubled but fell 30% for the year-to-date. FFC holds a large market share in both fertilizers.
In contrast, Engro Fertilizers (EFERT) reported a strong 86% increase in Urea sales in May, mainly due to last year’s low base after plant repairs. Still, EFERT’s total Urea sales declined by 38% for the five-month period. Their DAP sales also increased significantly in May.
Inventory levels for Urea reached an eight-year high at 1.3 million metric tons in May. With such high stock, experts suggest the government may allow exports to reduce pressure, which could benefit producers like EFERT after reviewing the full agricultural cycle.