The federal government has transferred the responsibility for cotton export matters from the Trade Development Authority of Pakistan to the State Bank of Pakistan.
The decision has been notified through S.R.O. 2486(I)/2025 issued by the Ministry of Commerce under the Imports and Exports Control Act, 1950, amending the Export Policy Order, 2022.
Under the revised rules, cotton exporters will now be required to place a security deposit equivalent to 1 percent of the contract value with the State Bank of Pakistan.
Exporters must also present a confirmation letter issued by the SBP to customs authorities along with shipping documents.
In addition, buyers will be required to open an irrevocable letter of credit, and exporters must complete shipment of the contracted quantity within 180 days.
The notification states that if exporters fail to meet the shipment deadline, the SBP will forfeit the security deposit in proportion to the quantity not shipped.
Previously, cotton export matters were handled by the Trade Development Authority of Pakistan. Officials said the shift aims to strengthen oversight, improve compliance, and ensure timely execution of export contracts in the cotton sector.
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