ISLAMABAD:
The government has decided to initiate dialogue with a Chinese independent power producer (IPP) on the potential use of an underutilised berth, dedicated for Sahiwal power plant, for the export of cement and clinker.
The Port Qasim Authority (PQA) will assist the All Pakistan Cement Manufacturers Association (APCMA) in talks with the IPP.
Sources told The Express Tribune that in a recent meeting of the task force constituted by the prime minister, the PQA was advised to provide assistance in discussions with the Chinese IPP on utilising the port berth for clinker exports.
This move demonstrates a mix of government and private-sector approach to revitalise cement exports and lay down a comprehensive roadmap for operational and policy-level reforms essential to position Pakistan as a competitive player in global cement trade.
The task force unanimously approved several recommendations for consideration by the prime minister. It recommended that the development and construction of additional multi-purpose berths at Port Qasim should be expedited to increase port capacity for exports.
It proposed that the construction of an additional storage capacity of 30,000 metric tons at Port Qasim should be planned and accelerated. Also, permanent repair of the existing storage facility should be undertaken within the stipulated timeframe of four to five months.
It suggested that the royalty of $2.38 per ton on cement and clinker exports from Pakistan International Bulk Terminal Limited (PIBTL) be waived through engagement with stakeholders. Additionally, the maintenance dredging of berths 14-15 and 16-17 to 13 metres be undertaken immediately to increase the number of deep-draft (13-metre) berths at Karachi Port to facilitate larger vessels of up to 55-60k tons.
The task force recommended that Karachi Gateway Terminal Multipurpose Limited (KGTML) should not increase handling charges for cement and clinker exports subject to the provision of assured volumes (business viability) from the APCMA.
It directed Karachi Port Trust (KPT) to review its tariffs for export shipments to ensure they were competitive and in line with Port Qasim and regional ports. The State Bank of Pakistan (SBP) will coordinate a meeting with Pakistani banks operating in Bangladesh to facilitate the opening of Letters of Credit (LCs).
Arif Habib Group and the Ministry of Maritime Affairs will jointly approach the chief minister of Sindh for land allocation for truck marshalling yards near the Northern Bypass. The Ministry of Railways will explore the development of a rail linkage with these yards in consultation with the provincial government.
The PM Office had constituted the task force for enhancing Pakistan’s cement and clinker export competitiveness along with terms of references (ToRs) in April 2025.
In its first meeting, the special assistant to the prime minister (SAPM) underscored the urgency of enhancing export performance due to the significant underutilisation of industry capacity – less than 50% utilisation with only 11-18% of total production exported in the preceding two fiscal years. ToRs were discussed with a particular focus on improving export procedures, slashing production costs, overcoming infrastructure challenges and streamlining regulatory processes.
Arif Habib voiced concerns over high taxes, port inefficiencies, inadequate logistics and the impact of anti-dumping duties. The State Bank clarified that no prior approval was needed for cost & freight (c&f) transactions while the Board of Investment (BOI) and industry stakeholders were directed to formulate a proposal for dedicated Export Processing Zones.
Trade restrictions, especially the ban on exports to India and Sri Lanka’s non-tariff barriers, were highlighted and the Ministry of Foreign Affairs was tasked with addressing challenges at the diplomatic level.
The second meeting reviewed progress, where Arif Habib reiterated the State Bank’s position on c&f transactions, flagged continuously with LC opening in Bangladesh, and recommended further central bank intervention. Infrastructure problems including the severe congestion at Karachi Port and Port Qasim, and underutilisation of berths due to legal and ownership issues were also discussed.
The proposal for truck marshalling yards equipped with e-tag systems and supporting rail linkages with ports gained traction. It was noted that PIBTL remained underutilised due to a $2.38/ton royalty, necessitating a legally viable waiver mechanism.
The meeting emphasised the need for exploring Gwadar Port and streamlining axle load regulations through stakeholder engagement. Sub-committees were formed to provide concrete recommendations on easing port congestion, tariff rationalisation, rehabilitation of non-functional berths and alternative export infrastructure.
During the third meeting, interim reports of the sub-committees were reviewed. The State Bank pledged to coordinate with Pakistani banks in Bangladesh to facilitate the opening of LCs.
Updates on infrastructure were provided including the progress on the Expressway and dredging at Karachi Port. KPT and PQA shared tariff developments and expressed their readiness to support new export handling facilities, subject to business volume assurances.
