Pakistan’s fertilizer industry closed calendar year 2025 on a strong note, recording its highest-ever urea sales as demand surged sharply toward the end of the year.
According to a report by AKD Securities, total urea offtake reached a record 6.7 million tonnes in CY25, reflecting a 2% increase compared to the previous year.
A major boost came in December 2025, when urea sales jumped to 1.4 million tonnes, marking the highest monthly offtake in the sector’s history.
This represented a strong 37% year-on-year increase and played a key role in lifting full-year performance. Analysts said the surge was supported by aggressive price discounts offered by manufacturers to reduce stock levels.
Additional support came from government measures. The Punjab government’s announcement of the wheat procurement price improved farmer sentiment, while provincial initiatives such as interest-free agricultural loans encouraged fertilizer purchases.
Due to strong sales, industry-wide urea inventories dropped sharply to 284,000 tonnes by year-end, compared to 1.14 million tonnes a month earlier.
However, performance across fertilizer types remained mixed. While urea achieved record volumes, phosphatic fertilizers struggled due to higher prices. DAP sales declined 18% year-on-year to 1.3 million tonnes, while NP sales fell 9%.
NPK sales showed only marginal growth of 1%. In contrast, CAN fertilizer performed strongly, with sales rising 41% year-on-year due to competitive pricing and better availability.
At the company level, Engro Fertilizers posted a 10% rise in urea sales to 2.3 million tonnes, supported by heavy December discounts.
Fauji Fertilizer Company saw urea sales decline 9%, though it retained the largest market share. Fatima Fertilizer recorded strong growth in urea and CAN sales but faced declines in DAP and NP products.