Government Orders Capacity Boost at Port Qasim for Cement Exports

The government has instructed the Port Qasim Authority (PQA) to increase its storage capabilities and enhance facilities for cement and clinker exporters. These exporters are currently encountering obstacles when exporting their goods through Karachi Port.

A significant meeting occurred on Tuesday, presided over by Haroon Akhtar Khan, the Special Assistant to the Prime Minister (SAPM). The task force established by the Prime Minister to stimulate cement and clinker exports was reviewed during the meeting. The Chairman of the Port Qasim Authority and representatives from the Karachi Port Trust (KPT) offered briefings.

Meeting participants suggested that the Ministry of Foreign Affairs address relevant issues through diplomatic means. The task force has endorsed the following recommendations for the Prime Minister’s consideration:

  • Expedited development and construction of two additional multi-purpose berths at Port Qasim to augment the port’s export capacity.
  • Creation of additional storage space capable of holding 30,000 tons to assist exports.
  • Timely completion of permanent repairs to the present storage infrastructure at Port Qasim within five months.
  • A request to waive the royalty of 2.38 per ton for cement and clinker exports from PIBTL, achieved through collaboration with stakeholders.
  • KPT is to re-evaluate tariff charges on export shipments, aiming for competitive rates with PQA and regional ports.
  • Facilitation of a meeting between the SBP and Pakistani Banks operating in Bangladesh to discuss LC facilitations, with meeting minutes shared with the task force.
  • KGTML to maintain current handling charges for cement and clinker exports, conditioned on volume of business guarantees from the cement sector.

The Chairman of Port Qasim Authority indicated that a proposition for an extra 30,000 metric tons of storage space has been presented to the PQA Board for endorsement. He affirmed that repairs to the current storage units would be finished by December 2025. The Chairman of KPT reported that berths 10 through 17 are slated for completion by April 2026.

Key figures such as Prime Minister’s Coordinator Rana Ehsan Afzal, Arif Habib, and delegates from the Port Qasim Authority, Karachi Port Trust (KPT), State Bank of Pakistan, Board of Investment, Gwadar Port Authority, and other high-ranking government officials were present.

Earlier, Arif Habib voiced concerns about elevated taxation, port inefficiencies, logistical shortfalls, and the repercussions of anti-dumping levies. In response, State Bank of Pakistan (SBP) representatives clarified that CNF transactions do not require prior authorization. The Board of Investment (BoI) and Ministry of Industries stakeholders were tasked with creating a plan for dedicated export processing zones. Trade limitations, specifically the prohibition of cement exports to India and non-tariff barriers from Sri Lanka, were recognized as considerable impediments to export enhancement.