Commerce Ministry Authorizes Potassium Sulphate Export from Gwadar Port

The Ministry of Commerce (MoC) has enacted a Statutory Regulatory Order (SRO) to permit the export of potassium sulphate through Gwadar Port. The federal government has authorized two entities to export potassium sulphate from Gwadar Port, implementing stringent monitoring of quantitative restrictions within the customs WeBOC system to oversee export data in real-time.

According to SRO 705(1)/2025, the federal government, exercising authority granted by sub-section (I) of section 3 of the Imports and Exports (Control) Act, 1950 (XXXIX of 1950), has mandated 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.”

Focus on Gwadar’s Mining Port Development

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

Agven, a registered fertilizer producer 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 is approximately 50,000 tons per year (based on National Fertilizer Development Center data), while the nation’s installed production capacity is 65,000 tons annually, inclusive of Gwadar Free Zone’s 20,000 tons.

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

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

Exports of urea/fertilizers are generally prohibited under the Export Policy Order, 2022. Following discussions with the Ministry of Industries and Productions, Commerce, and FBR, amending the Export Policy Order, 2022 to allow potassium sulphate (K2SO4) fertilizer exports from Gwadar Port was deemed the optimal solution.

The Gwadar Port Authority endorsed the company’s request for an exemption to the Export Policy Order, 2022 for potassium sulphate (K2SO4) fertilizer, as it would foster development and operational activities at Gwadar Port.

The export is anticipated to facilitate capacity expansion within the Gwadar Free Zone and generate export revenue.

The SRO amendment is subject to the following conditions:

  • A maximum of 10,000 tons per annum or 50% of 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 manufacturers in the Gwadar Free Zone and conduct annual export reviews.
  • The Ministry of Industries & Production will communicate the decision regarding potassium sulphate fertilizer exports (HS Code 3104.3000) to the FBR and relevant entities.
  • The FBR will update its systems to reflect the updated export regulations for potassium sulphate (K2SO4) from Gwadar Port.