Islamabad Permits Potassium Sulphate Export from Gwadar Port

The Ministry of Commerce (MoC) has enacted a Statutory Regulatory Order (SRO) to facilitate the export of potassium sulphate through Gwadar Port. The government has authorized two companies to proceed with these exports, subject to stringent monitoring via quantitative restrictions implemented within the customs WeBOC system for real-time data oversight.

According to SRO 705(1) 2025, under the authority granted by sub-section (I) of section 3 of the Imports and Exports (Control) Act, 1950, the government has mandated amendments to the Export Policy Order, 2022.

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

Focus on Gwadar’s Development

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

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

Pakistan’s total potassium sulphate fertilizer consumption is approximately 50,000 tons per year, based on National Fertilizer Development Center data. The country’s overall installed production capacity is 65,000 tons per year, inclusive of the 20,000 tons from the Gwadar Free Zone.

The company initially expressed interest in exporting potassium sulphate from Gwadar Port in an application dated October 28, 2024.

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

The Ministry of Industries and Production (MoMA) has banned urea/fertilizer exports, as stipulated in serial No.11 and 12 of Schedule-I of the Export Policy Order, 2022. Despite discussions with various ministries and the FBR, amending the Export Policy Order, 2022, for potassium sulphate (K2SO4) fertilizer exports from Gwadar Port was deemed the only viable solution.

The Gwadar Port Authority endorsed the company’s request for an exemption to the Export Policy Order, 2022, for potassium sulphate (K2SO4) fertilizer by M/S AgvenPvt Ltd, citing the potential to boost Gwadar Port’s development and operations.

Exports are projected to facilitate capacity expansion within the Gwadar Free Zone and generate export revenue.

The SRO amendment is based on these conditions:

  • A maximum of 10,000 tons annually or 50% of actual annual 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 June 30th).
  • The Ministry of Industries and Production/Fertilizer Review Committee (FRC) will gather monthly data on production and exports from Gwadar Free Zone manufacturers and review exports annually.
  • The Ministry of Industries & Production will communicate the export decision for potassium sulphate fertilizer (HS Code 3104.3000) to the FBR and relevant ministries/divisions.
  • The FBR will update its system to reflect potassium sulphate (K2SO4) exports from Gwadar Port.