FINANCIAL ACCOUNTIG II

Abstract

Fertilizer usage has been increasing in the recent past in the country and is anticipated to increase further. Fertilizer has become one of the eight main categories of imports of the country. As Pakistan is an agricultural country, fertilizers are a major concern to the country. Fertilizer industry is the second largest consumer of natural gas with consumption of around 22.5 % of total gas output and is, therefore, directly affected by gas pricing structure. In Pakistan the demand consists mainly of Nitrogen Based Urea and Phosphate based urea (DAP). In the past 25 years, the average demand of Nitrogen based urea in the country was 78% and that of Phosphate was 21% of the total demand. FFC sells the nitrogen based urea under the name “Sona Urea” and the phosphate based under the name of “DAP”.