Mahmud Ahmed CEO and Managing Director of Fauji Fertilizer Company Limited	Asad Umar President of Engro Chemical Pakistan Limted

Agriculture remains the cornerstone of the Pakistani economy, generating over 25% of GDP and employing 60% of the nation’s workforce. Cotton and textiles account for the majority of the country’s agro-industry exports, but given the scope of the nation’s agriculture sector there is great potential for the growth of new industries. In addition to textiles, Pakistan also has active existing jute, fertilizer, and sugar industries.

Fauji Fertilizer Company Limited (FFC) operates three plants in the Punjab region that produce 2 million tons of urea fertilizer per year, covering roughly 50% of Pakistan’s needs. The company’s advanced process technologies have become a regional benchmark, attracting international visitors from throughout the region who are looking to upgrade their facilities. Its CEO and Managing Director, Lieutenant-General Mahmud Ahmed, says FFC’s success stems from its homegrown human resources – FFC relies exclusively on Pakistani engineers, and work that cannot be done on site is always carried out elsewhere in Pakistan. He comments: “Fauji has an excellent track record in operations and maintenance, which is recognized internationally, and I believe that the basic reason for our success is the fact that we depend upon indigenously trained staff. Our philosophy has been self-reliance. This means working in Pakistan, for Pakistan, by Pakistanis.”

Pakistan’s agri-business companies are enjoying success through improved productivity and well-executed diversification strategies.

Fauji Fertilizer Company (FFC) has contributed greatly to the agricultural sector, always employing indigenously trained staff.

In addition to its financial success, FFC has also contributed greatly to the growth of the Pakistani agriculture sector. Since 1982, the company has been providing agricultural advisory services to farmers, which has had a significant impact on efficiency, crop yield optimization, and the overall economic returns for the agricultural sector. Mr. Ahmed states, “One of our slogans is that Fauji feeds the land that feeds the people, and this is how we feel. We truly believe that what is good for the farmer is good for Pakistan, and is also what is beneficial for our company.” Today, FCC operates five advisory services centers with the company’s own agronomists and soil scientists.

FFC forms part of the Fauji Foundation’s group of companies, which includes a number of agro industry ventures in Pakistan such as Fauji Sugar Mills, Fauji Cereals, Fauji Polypropylene Products and Fauji Corn Complex. The foundation, headed by Lieutenant-General Said Muhammad Amjad, its Managing Director, is a charitable trust dedicated to the benefit of active and retired military personnel and their dependents.

Another exceptional player in Pakistan’s fertilizer industry is Engro Chemical Pakistan Limited. Originally an Exxon company, Engro became one of Pakistan’s first ever employee-led buyouts when staff took over Exxon’s equity in the company in 1991. Today, Engro has a 20% share of Pakistan’s fertilizer market and is active in the marketing of imported hybrid and open pollinated seeds. The company is also involved in two joint ventures with international firms. It operates a liquid chemical jetty and storage facility in Port Qasim with Royal Vopak of the Netherlands, and has formed Engro Asahi Polymer & Chemicals with Japanese partners, which now boasts a majority share of Pakistan’s PVC market.

Agriculture generates 25% of GDP and employs 60% of the nation’s workforce, yet room for expansion still exists

In the past five years, Engro has increased its revenues by nearly 50% and its profits by 40%, due in large part to investments made in the renovation of its plants in 1998, which increased production by 14%. Engro’s President Asad Umar elaborates: “The main driver of the improvement in earnings was the investments and diversifications we made in the late 1990s. What we want to do from here onwards is based on a two-pronged strategy. The first is to continue our growth and diversification, and the second thing is to further improve the productivity of our ongoing operations. So our focus is to continue getting better and better at what we do, and to find new areas of growth and expansion.”