The State Bank of Pakistan (SBP) has directed banks not to entertain sugar export applications after July 23, 2012. Following the federal government directives, the State Bank has advised all authorised dealers in foreign exchange (banks) to process the cases of sugar export. As per the mechanism described by SBP, all banks will forward the requests of sugar mills along with photocopy of E-form, copy of contract, letter of credit (LC), advance payment, etc for the approval of SBP.
While, forwarding such requests banks should also maintain the record of each sugar mills to ensure compliance of maximum prescribed quota of 5,000 tons per sugar mill, says an EPD circular letter issued on Thursday to the heads/ principal offices of all authorised dealers in foreign exchange operating in Pakistan. All requests should be addressed to Director, Exchange Policy Department, State Bank of Pakistan, I.I. Chundrigar road, Karachi. SBP will allow export against each E-form on first come first served basis.
The SBP will also provide export figure to banks regularly to ensure export as per policy and in this regard banks will send sugar export update to Director, Exchange Policy Department in addition, incomplete requests will not be considered. The State Bank has also decided not to receive sugar export applicant after July 23.
It may be pointed out that the government has allowed export of sugar on the some terms and conditions and according to condition some 200,000 tons of sugar will be exported. While, a quantity not in excess of 5,000 tons shall be allowed to be exported by individual sugar mills on first come first served basis. The export shall be made only against E-form and the State Bank will monitor the export and no E-form shall be issued in excess of individual and cumulative ceiling mentioned above.
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