Normally we do not cover international or local politics but this time – United States officials decided to interfere in private companies and it has been reported that they have been putting pressure on Pakistan Based Fatima Fertilizer, a subsidiary of Arif Habib Group, a multi-billion Rupees conglomerate.
Forget the tussle between United States and Pakistan’s governments – The game of putting pressure on each other is now finding a new ground and according to Washington Post’s recent article - United States govt is now putting pressure directly on Pakistan’s Corporate sector.
Background of Story
Taliban insurgents/bombers are using ammonium nitrate fertilizer as the main ingredient in their explosives. According to U.S official, captures of Ammonium Nitrate after raids increased by more than 100% in last seven months of 2012 as compared with previous year.
Despite the jump in seizures by American soldiers, senior U.S. officials said the number of improvised explosive devices, or IEDs, manufactured with the chemical compound has increased and is on pace to surpass the record levels of 2011.
Means? This fertilizer (when used in explosives) is a serious Threat to their operations in Afghanistan.
How Americans Link this with Pakistan
According to the article published in Washington Post, the homemade bombs, which are often planted along roads and footpaths, are one of the leading killers of U.S. and NATO troops in Afghanistan.
The ammonium nitrate, used in these explosives, is manufactured at two plants across the border in Pakistan, and officials said the manufacturer ( Pakistan Based Fatima Group) has resisted efforts to control the flow into Afghanistan.
And The Threat Business Begins
According to the report, a member of the U.S Senate Foreign Relations Committee, has pushed, again, for a tougher stance against Pakistan for failing to curtail the trade and is troubled by the lack of progress.
“The administration will soon need to certify that Pakistan is addressing this threat in order to release millions in security assistance”, senate member said.
The report also claimed that all of the ammonium nitrate used in the Taliban’s bombs comes from two fertilizer plants in Pakistan, both owned by the Fatima Group, a subsidiary of Arif Habib Group.
Interestingly, the production and sale of ammonium nitrate is legal in Pakistan, but it is banned in Afghanistan.
History of Fatima Group
Pakarab Fertilizers Limited was established as a result of protocol concluded and signed by the Government of Pakistan and State of Abu Dhabi.
The Company was incorporated in 1973. Subsequently, PIDC assigned 52% of its shares to National Fertilizer Corporation (NFC) of Pakistan and ADNOC assigned 48% Company Profile of its shares to International Petroleum
Investment Company, with a paid-up capital of Rs. 74 Crore.
Under the privatization policy of Government of Pakistan, Pakarab Fertilizers Limited was privatized in 2005 at a cost of Rs 1,412 Crore. It was acquired by the consortium of Fatima Group and Arif Habib Group.
EconomyAge cannot reach to officials of Fatima Group for their comments due to weekend holidays.
- Despite Pressures – Fatima Fertilizers Posted a Profit of Rs 259 Crore
- Series of Bomb Blasts in National Bank Branches across Sindh
- Dawood Group Pulled Out of Deal – Pak Arab Fertilizer Furious
- Arif Habib Limited Made Rs 50 Crore in first three months of 2012
- Arif Habib Get Rid of Thatta Cement.But Why?