Govt set to allow potassium sulphate exports from Gwadar

The federal government is expected to permit the export of potassium sulphate from Gwadar Port under strict quantitative controls and real-time tracking through the WeBOC customs system. The move comes after two companies operating in the Gwadar North Free Zone sought approval to export the fertilizer, Business Recorder reported. 

Two firms, M/S Agven Private Limited and M/S Hangeng Trade Company Private Limited, are fully operational in the Gwadar Free Zone. Agven, a fertilizer manufacturer, has set up a plant with an annual production capacity of 20,000 tons. According to National Fertilizer Development Center data, Pakistan’s annual potassium sulphate consumption is around 50,000 tons, while total installed production capacity in the country stands at 65,000 tons, including Agven’s facility.

Agven applied for export approval in October 2024, stating that its operations do not utilize subsidized raw materials, including gas, and that its primary input, potassium chloride, is directly imported rather than sourced domestically.

Currently, Pakistan bans the export of urea and other fertilizers under the Export Policy Order 2022. However, after multiple inter-ministerial discussions, officials determined that amending the order to allow potassium sulphate exports from Gwadar was the best solution. 

The Gwadar Port Authority also endorsed the exemption, arguing that permitting exports would aid in the port’s development and attract further investment in the free zone.

Following consultations with the Ministries of Commerce, Industries & Production, National Food Security & Research, and the Federal Board of Revenue (FBR), an amended proposal has been formulated. The Special Investment Facilitation Council (SIFC) and the Fertilizer Review Committee (FRC) have also reviewed and supported the plan.

The proposal recommends a phased export allowance of up to 10,000 tons per year, equivalent to 50% of actual annual production, whichever is lower. This will be implemented in two tranches—5,000 tons by June 30, 2025, and the remaining by December 31, 2025.

To ensure compliance, the Ministry of Industries & Production will collect production and export data monthly from manufacturers in the Gwadar Free Zone and review the export policy annually. The ministry will also officially notify the decision and coordinate with the FBR and relevant authorities for implementation.

The FBR is tasked with updating its customs monitoring system to regulate the approved export volumes from Gwadar Port under the revised export policy. The government aims to facilitate foreign trade while maintaining adequate domestic fertilizer supplies through this controlled export framework.