Urea sales hit record high as discounts and government incentives drive CY25 offtakes

Pakistan’s fertilizer sector closed CY25 with record urea offtakes, as industry sales reached an all-time high of 6.7 million tonnes, supported by a sharp acceleration in December. Urea sales in Dec’25 surged to 1.4 million tonnes, up 37% year-on-year, marking the highest monthly offtake on record and lifting full-year growth to 2% compared to CY24. According to a report by AKD securities.

According to sector data, the increase in December was driven by multiple factors, including higher discounts offered by manufacturers to clear inventory, the announcement of the wheat procurement price by the Punjab government, and provincial incentives such as interest-free loans for farmers. As a result, industry-wide ending urea inventory declined significantly to 284,000 tonnes from 1.14 million tonnes in the previous month.

Nutrient-wise, performance across the fertilizer spectrum remained uneven. While urea sales reached record levels, phosphatic fertilizers continued to lag. DAP offtakes declined 18% year-on-year in CY25 to 1.3 million tonnes, largely due to higher prices. NP sales also fell by 9% year-on-year, while NPK sales recorded a marginal 1% increase. In contrast, CAN offtakes rose sharply by 41% year-on-year, supported by competitive pricing and higher availability.

At the company level, Engro Fertilizers (EFERT) recorded a strong increase in urea sales, with CY25 offtakes rising 10% year-on-year to 2.3 million tonnes. December sales jumped 56% year-on-year after the company offered price discounts of up to Rs500 per bag, reducing its inventory to 53,000 tonnes from 504,000 tonnes in November. EFERT’s urea market share increased to 34% in CY25 from 32% in the same period last year. However, its DAP sales declined 46% year-on-year, lowering its DAP market share to 12% from 19%.

Fauji Fertilizer Company (FFC) reported a 9% year-on-year decline in urea offtakes to 2.9 million tonnes in CY25, with market share normalising to 43% from 48% in CY24. In DAP, FFC’s offtakes fell 16% year-on-year, broadly in line with the overall industry decline, resulting in an increase in market share to 62% from 61%.

Fatima Fertilizer posted a 16% increase in urea offtakes to 1.1 million tonnes, raising its market share to 17% from 15%. The company also recorded a 41% year-on-year increase in CAN sales to 956,000 tonnes. However, its NP and DAP sales declined by 7% and 36% year-on-year, respectively.

Overall, CY25 concluded with record urea sales, a sharp reduction in inventories, and clear divergence in demand trends between nitrogenous and phosphatic fertilizers, reflecting pricing dynamics and policy support during the year.