Federal Minister for Industries and Production, Rana Tanveer Hussain, announced on Tuesday that urea fertilizer companies are currently making a 30 percent profit, which is higher than any other sector.

In response to concerns raised by Chairman Committee Aoun Abbas regarding low demand for urea and the challenges faced by farmers, the minister proposed reducing the profit margin of urea companies from 30 percent to 20 percent.

This measure aims to prevent fertilizer shortages and reduce the financial burden on farmers.

During a briefing to the Senate Standing Committee on Industries and Production, Minister Hussain highlighted that this year’s urea production has exceeded 400,000 metric tons. Despite this increase, the government has decided to import an additional 100,000 tons of urea to ensure sufficient supply, despite the high costs involved.

The price of imported urea stands at approximately Rs. 5,800 per bag, with handling and transport costs raising the total to Rs. 7,000 per bag.

The committee also received a briefing from the Small and Medium Enterprise Development Authority (SMEDA), which outlined its budget of Rs. 368 million for 2024 and plans for a new Rs. 5 billion fund.

Officials emphasized the significant contribution of SMEs to the economy, noting that they account for 40 percent of GDP and 78 percent of national employment. SMEDA is focused on enhancing small businesses through training, financing, and connecting small brands with larger ones.

Additionally, discussions during the briefing included strategies to reduce the wastage of fruits and vegetables by establishing dehydration plants and improving export processes. Minister Hussain stressed the importance of a comprehensive system to support both agriculture and SMEs effectively.

The measures announced aim to balance the profitability of urea companies with the needs of farmers and to bolster the role of SMEs in the national economy.