Azerbaijan to give urea to Pakistan on deferred payment, no interest

ISLAMABAD: Azerbaijan is in the process of providing Pakistan 200,000 tons of urea to meet Pakistan’s Rabi season demand under GtG (government-to-government) arrangement on deferred payment mechanism, a senior official of the Ministry of National Food Security and Research told The News.

“SOCAR which is the state-owned company of Azerbaijan is providing urea without any interests or guarantees. SOCAR earlier agreed to bail out Pakistan on the provision of urea on a deferred payment mechanism without any interest or guarantees.”

To this effect, SOCAR, he said, has succeeded in delivering to Pakistan 100,000 tons of urea in December in the shortest period with the unloading of the 2nd vessel to start today (Tuesday). Pakistan earlier received a significant boost with the arrival of the first shipment of urea from the United Arab Emirates, addressing the critical scarcity and high prices of fertilizer in the country. This shipment was part of a larger contract awarded to the SOCAR Carbamide plant of Azerbaijan for supplying over 200,000 metric tons of urea, marking a significant move to stabilise the agricultural supply chain during the crucial Rabi cropping season. Despite Azerbaijan’s limited production capabilities, the official said, it is determined to fulfill its contractual obligations by sourcing additional urea from regional allies, including Qatar and Russia, to meet the January 2024 deadline. This move underscores the regional cooperation and trade dynamics shaping South Asia’s agricultural landscape.