Gwadar Port: SRO issued to allow potassium sulphate export

ISLAMABAD: The Ministry of Commerce (MoC) has issued Statutory Regulatory Order (SRO) aimed at allowing export of potassium sulphate from Gwadar Port. The federal government has allowed two companies to export potassium sulphate from Gwadar Port along with strict monitoring of quantitative restrictions to be put in place in customs WeBOC system in order to check export data on real-time basis.

According to the SRO 705(1) 2025, in exercise of the powers conferred by sub-section (I) of section 3 of the Imports and Exports (Control) Act, 1950 (XXXIX of 1950), the federal government has directed that further amendment be made in the Export Policy Order, 2022.

In the SRO, in Schedule-I, in column (1), against Sr No 12, in column (4), after the word and full stop “agencies” the following shall be inserted: “export of potassium sulphate (K2SO4) (HS Code: 3104.3000) from Gwadar Port by companies manufacturing in Gwadar Free Zone.”

Sharing the details, sources said, two major industries namely Agven Private Limited (fertilizer) and Hangeng Trade Company Private Limited (meat and agriculture processing) are fully established and operational in the Gwadar North Free Zone.

Agven is a fertilizer production company registered in North Free Zone. The company started production of potassium Sulphate from its plant with a capacity of producing 20,000 tons per annum.

Potassium sulphate fertilizer overall consumption in Pakistan is 50,000 tons per annum (average as per National Fertilizer Development Center data), whereas the overall production installed capacity in Pakistan is 65,000 tons per annum, including the 20,000 tons per annum in Gwadar Free Zone.

The company had shown an interest in exporting its production of potassium sulphate from Gwadar Port in its application of October 28, 2024.

The company stated that it does not use any subsidized raw materials or resources from Pakistan including use of gas as raw material.

The main raw material viz potassium chloride is directly imported from abroad. It is not sourced from the tariff area of Pakistan and does not impact the supply of fertilizer for domestic use.

According to MoMA, export of urea/fertilizers is banned and subject to the provisions of serial No.11 and 12 of Schedule-I of Export Policy Order, 2022. Multiple meetings have been held with Ministry of Industries and Productions, Commerce, and FBR to resolve the issue but the only way forward is to relax the Export Policy Order, 2022 for the export of potassium sulphate (K2SO4) fertilizer from Gwadar Port.

Gwadar Port Authority supported the request of the company for exemption of the Export Policy Order, 2022 to the extent of potassium sulphate (K2SO4) fertilizer by M/S AgvenPvt Ltd, as the export of the commodity would help in development and operationalisation of Gwadar Port.

The export will also allow the expansion of capacity inside Gwadar Free Zone and generate export revenue.