Karachi December 22 2022: Fauji Fertilizer Bin Qasim, the only DAP manufacturer in Pakistan, hereby informs that its DAP Plant has been shut down on December 21, 2022 to more efficiently manage its DAP inventory owing to demand and supply situation in the market.
“The agriculture sector is projected to contract the most, at 0.9 percent of GDP. The damage and losses in agriculture will have spillover effects on the industry, external trade and services sectors.” World Bank reported in its assessment report on floods.
During the shutdown period, planned annual maintenance activity will also be carried out in January 2023 to ensure reliability and sustainable safe operations at the plant.
After the completion of annual maintenance, the startup of DAP plant will commence based on the DAP market situation. Notwithstanding the temporary closure, the Company intends to meet the projected DAP demand in the country. However, the Urea plant is operating normally.
World Bank assessment estimates total damages of floods in Pakistan to exceed USD 14.9 billion, and total economic losses to reach about USD 15.2 billion.
The floods affected 33 million people and more than 1730 lost their lives. They are particularly impacting the poorest and most vulnerable districts. The situation is still evolving, with flood waters stagnant in many areas, causing water-borne and vector-borne diseases to spread, and more than 8 million displaced people now facing a health crisis. The crisis thus risks having profound and lasting impacts on lives and livelihoods. Loss of household incomes, assets, rising food prices, and disease outbreaks are impacting the most vulnerable groups. Women have suffered notable losses of their livelihoods, particularly those associated with agriculture and livestock.
Compounding the existing economic difficulties facing the country, the 2022 floods are expected to have a significant adverse impact on output, which will vary substantially by region and sector. Loss in gross domestic product (GDP) as a direct impact of the floods is projected to be around 2.2 percent of FY22 GDP. The agriculture sector is projected to contract the most, at 0.9 percent of GDP. The damage and losses in agriculture will have spillover effects on the industry, external trade and services sectors.
The Government is providing immediate relief to the impacted communities and supporting the early recovery, while aiming to ensure macroeconomic stability and fiscal sustainability. Moving forward, as recovery and reconstruction spending rises, the loss in output could be mitigated. Yet, significant international support will be needed to complement Pakistan’s own commitment to increase domestic revenue mobilization and save scarce public resources, and to reduce the risk of exacerbating macroeconomic imbalances.