SBP Sets New Guidelines For Banks to Facilitate Sugar Exports

The State Bank of Pakistan (SBP) has established new guidelines for banks to facilitate the export of 150,000 metric tons of sugar following approval by the Economic Coordination Committee of the federal cabinet.

The Economic Coordination Committee (ECC) of the Cabinet has allowed export of 150,000 MT of sugar with certain terms and conditions as provided in its Case No. ECC-116/12/2024 dated June 13, 2024. The ECC’s decision has also been ratified by the Federal Cabinet in its decision case No. 181/22/2024 dated June 25, 2024.

The attention of Authorized Dealers (ADs) is invited to the enclosed Ministry of Industries and Production’s Office Memorandum (O.M) F. No.1(6)/2022-23-CAO dated June 26, 2024.

Accordingly, ADs are advised to process the requests of eligible applicants for “Export of Sugar”, subject to submission/fulfillment of the following:

1. ADs will obtain proof of allocation of quota by the respective Provincial Cane Commissioner and keep a copy of the same in their record.
2. ADs will obtain an undertaking from the exporters that the consignment will be shipped within 45 days from the date of quota allocation.
3. ADs will ensure 100 percent receipt of export proceeds in advance from the buyer abroad through the normal banking channel, before the shipment takes place, based on a valid sales contract.
4. ADs will submit sugar export transactions and shipment updates to the Director, FEOD, SBP-BSC, Head Office, Karachi on a weekly basis as per the reporting format at this address every Friday at 1700 HRS.

In view of the foregoing, the earlier instructions contained in EPD Circular Letter No. 06 dated January 30, 2023, on the captioned subject stand superseded.

ADs are advised to bring the above instructions to the knowledge of all their constituents and ensure meticulous compliance there against.