ISLAMABAD: The licensing saga around fertilizer manufacturing in Punjab has snowballed into a legal battle, pushing major industry players to seek stay orders from the courts and now prompting urgent action from the government.
The dispute traces back nearly three years, when the Punjab government made it mandatory for fertilizer manufacturers to obtain licenses either from the provincial Agriculture Department or from the Pakistan Standards and Quality Control Authority (PSQCA), the federal body responsible for ensuring product standards. Failure to comply, authorities warned at the time, would result in industrial units being shut down and criminal cases, including FIRs, filed against owners.
According to industry sources, several leading fertilizer companies secured stay orders from the courts to avoid the licensing requirements, while small-scale manufacturers were left struggling. Insiders say the cost and compliance burden of meeting Punjab’s licensing criteria became a major hurdle, while the federal licensing process through PSQCA, though less costly, involved considerably longer waiting times.
As a result, the licensing dispute has dragged on in Punjab for almost three years, with multiple cases still pending in courts.
In a significant development, the Lahore High Court recently directed the Punjab government, PSQCA, and industry representatives to sit together and find a solution to the deadlock.
Meanwhile, the Ministry of Science and Technology (MoST) has stepped in, directing the PSQCA to urgently compile and submit detailed information on all pending court cases related to the agro, fertilizer, and crop sectors. The directive was issued following a letter from the Assistant Attorney General-IV, Lahore High Court, Multan Bench, regarding the case Pakistan Chemical Merchants Association vs. Government of Pakistan and Others. The case was last heard on April 22, 2025, when the court ordered respondents No. 1 and 4 to provide a written report and parawise comments within one week.
According to an official communication from the ministry, the matter was thoroughly discussed on May 8 with the Secretary of Science and Technology. The PSQCA has now been tasked to provide:
- A complete list of pending court cases related to the agro, fertilizer, and crop sectors, along with their current status;
- A comprehensive brief outlining the background, relevant legal provisions, and a proposed way forward;
- An officer knowledgeable in agro and crop matters to visit the MoST office with the required documentation;
- Copies of parawise comments already submitted in the courts.
The ministry has stressed that the requested details be submitted by tomorrow, underscoring the urgency of the matter due to court-imposed deadlines.
Copies of the directive have been sent to the Secretary, Director (Legal), and Deputy Director (Legal) of PSQCA in Karachi and Lahore, as well as the Incharge of PSQCA’s Multan office. Relevant officials at the Ministry of Science and Technology including the Secretary, Additional Secretary, and Joint Technological Advisor, have also been informed.
The ministry has emphasized that the matter be treated as a top priority to ensure compliance with the court’s orders.
