Pakistan’s leading fertilizer manufacturer Fauji Fertilizer Company Limited (FFC) has signed the Front-End Engineering Design (FEED) agreement with a Chinese company, for what it termed as Pakistan’s first coal-to-fertilizer project under the China-Pakistan Economic Corridor (CPEC) 2.0 framework.
The company shared the development in a social media post on Saturday, stating that the agreement was signed with Hualu Engineering and Technology Co. Ltd in China on May 24, 2026.
“With an investment of $1.12 billion, the project is expected to produce 717,000 tons of urea annually while utilizing approximately 2.1 million tons of indigenous coal each year – strengthening fertilizer security, enabling value creation from local resources, and supporting Pakistan’s long-term industrial growth,” FFC said.
The company added that the plant is planned for commissioning by 2030-31 and “reflects FFC’s continued commitment to innovation, self-reliance, and sustainable economic progress for Pakistan”.
The development comes as Pakistan seeks to attract fresh Chinese investment under the second phase of CPEC.
Both countries have reached a new broad consensus on deepening their strategic partnership, according to a joint statement issued by the countries at the end of Prime Minister Shehbaz Shari’s visit to Beijing.
The countries have agreed to promote “high-quality development” of the China-Pakistan Economic Corridor and welcome the participation of third parties in its development, the statement said.
