Commercial banks will provide financing to sugar importers on the directives of the central bank and the government of Pakistan.
In this regard, the State Bank of Pakistan has sought the participation of the commercial banks to facilitate the import. Banks will process the requests for the import on certain conditions.
The import may be allowed on behalf of importers who have been issued permit(s) by the Ministry of Commerce and may be allowed on a CFR Free out basis.
Advance payment up to 100% of the value of the letter of credit/contract/proforma invoice may be allowed, subject to compliance with other terms & conditions.
Banks shall submit consolidated data of LCs issued and advance payments made, against issued permits, to the Foreign Exchange Operations Department, SBP BSC Head Office Karachi on a daily basis, by close of business on the same day.
Banks shall ensure compliance with all other terms & conditions of permit(s) issued by the Ministry of Commerce.
The demand for sugar was recorded higher than the production and supply of sugar produced by the local millers. Hence, the retail prices of the white sugar have gone to above Rs. 100 in many parts of the country fuelling inflation on various products too.
The import of sugar might smooth its supplies and push down the prices as a result.