Pakistan grants export approval for Potassium Sulphate from Gwadar port

The Ministry of Commerce (MoC) has issued a Statutory Regulatory Order (SRO) enabling the export of potassium sulphate from Gwadar Port, marking a significant step towards facilitating exports from the region, according to a news report. 

Potassium sulphate is an essential fertilizer, with Pakistan’s annual consumption totaling around 50,000 tons. The production capacity in the country stands at 65,000 tons per year, which includes Agven’s production. 

According to the new regulation, two companies, Agven Private Limited and Hangeng Trade Company Private Limited, will be allowed to export the fertilizer, with a system in place to monitor the quantities in real-time through the customs WeBOC system.

The SRO 705(1) 2025, which amends the Export Policy Order 2022, was issued by the federal government under the powers granted by the Imports and Exports (Control) Act of 1950. This amendment will enable the export of potassium sulphate (HS Code: 3104.3000) specifically from Gwadar Port, with a focus on manufacturers located within the Gwadar Free Zone.

Agven, a fertilizer production company based in Gwadar Free Zone, has been producing potassium sulphate with an annual capacity of 20,000 tons. The company had requested the export of its potassium sulphate in an application submitted on October 28, 2024, stating that it does not use subsidized raw materials or resources, including domestic gas, for its production.

The government had previously imposed restrictions on the export of urea and fertilizers, but following multiple discussions between the Ministry of Industries, Commerce, and the Federal Board of Revenue (FBR), it was decided that the Export Policy Order should be relaxed for the export of potassium sulphate from Gwadar Port.

The export plan is subject to several conditions, including a cap on the total export quantity—no more than 10,000 tons per annum or 50% of Agven’s total annual production, whichever is lower. The export allowance will be implemented in two phases: a maximum of 5,000 tons by June 30, 2025, and the remaining quantity by December 31, 2025. 

The Ministry of Industries and Production will closely monitor production and export data and review the export annually.