Ministry Approves Potassium Sulphate Export from Gwadar Port

The Ministry of Commerce (MoC) has officially sanctioned the export of potassium sulphate through Gwadar Port, issuing a Statutory Regulatory Order (SRO) to that effect. This decision allows two designated companies to proceed with exporting potassium sulphate from Gwadar Port, under strict observation of quantitative limitations enforced via the customs WeBOC system for ongoing monitoring of export data.

SRO 705(1) 2025, enacted under subsection (I) of section 3 of the Imports and Exports (Control) Act, 1950 (XXXIX of 1950), mandates revisions to the Export Policy Order, 2022.

The SRO modifies Schedule-I, column (1), against Sr No 12, in column (4), by adding the following after “agencies”: “export of potassium sulphate (K2SO4) (HS Code: 3104.3000) from Gwadar Port by companies manufacturing in Gwadar Free Zone.”

Gwadar’s Development as a Mining Port

Sources indicate that Agven Private Limited (fertilizer) and Hangeng Trade Company Private Limited (meat and agriculture processing) are well-established and functioning within the Gwadar North Free Zone.

Agven, a fertilizer producer based in the North Free Zone, has commenced potassium sulphate production with an annual capacity of 20,000 tons.

Pakistan’s total potassium sulphate fertilizer consumption averages 50,000 tons annually (according to National Fertilizer Development Center data), while the nation’s overall installed production capacity stands at 65,000 tons per year, including Gwadar Free Zone’s 20,000 tons.

The company initially expressed its intent to export potassium sulphate from Gwadar Port in an application dated October 28, 2024.

The company affirmed that it does not utilize subsidized Pakistani resources or raw materials, including gas. Its primary raw material, potassium chloride, is directly imported and does not affect Pakistan’s domestic fertilizer supply.

According to MoMA, urea/fertilizer exports are prohibited under serial Nos. 11 and 12 of Schedule-I of the Export Policy Order, 2022. Several discussions involving the Ministry of Industries and Productions, Commerce, and FBR have occurred to address this matter. However, modifying the Export Policy Order, 2022 to permit potassium sulphate (K2SO4) fertilizer exports from Gwadar Port is seen as the only viable solution.

The Gwadar Port Authority has endorsed the company’s request for an exemption from the Export Policy Order, 2022 for potassium sulphate (K2SO4) fertilizer by M/S AgvenPvt Ltd, believing that exporting this commodity will aid in Gwadar Port’s operational development.

The export activity is also anticipated to facilitate capacity expansion within the Gwadar Free Zone and boost export revenues.

The amendment to the SRO is based on several conditions:

  • A maximum of 10,000 tons per annum or 50% of the actual annual potassium sulphate production, whichever is less.
  • The permission is valid for one year, until December 31, 2025, implemented in two phases: a maximum of 5,000 tons by June 30, 2025, and the remaining 5,000 tons by December 31, 2025 (with adjustments for any balance from the first phase).
  • The Ministry of Industries and Production/Fertilizer Review Committee (FRC) will gather monthly production and export data from Gwadar Free Zone manufacturers and conduct annual export reviews.
  • The Ministry of Industries & Production will communicate the decision regarding potassium sulphate fertilizer (HS Code 3104.3000) exports to the FBR and relevant ministries/divisions.
  • The FBR will update its system to reflect the potassium sulphate (K2SO4) export details from Gwadar Port.