KARACHI: In accordance with federal government directives, the State Bank of Pakistan (SBP) has authorized banks to facilitate the export of 500,000 tons of sugar. However, the SBP has mandated that exporters must secure advance payment of export proceeds for shipments destined for Afghanistan.

According to the office memorandum, the Economic Coordination Committee (ECC) of the Cabinet has approved the export of an additional 500,000 metric tons of sugar, subject to specific terms and conditions. This decision has also been ratified by the Federal Cabinet.

The export quota has been allocated among the provinces based on this year’s actual production. Punjab has received 64 percent of the total quota, Sindh 30 percent, and Khyber Pakhtunkhwa 6 percent.

ECC allows additional export of 500,000 MT of surplus sugar

Accordingly, SBP has advised banks to process the requests of eligible applicants for “Export of Further 500,000 metric tons of Sugar”, subject to submission or fulfillment of requirements and conditions set by the SBP.

As per procedure, Authorized Dealers (ADs) will obtain proof of allocation of quota by the respective Provincial Cane Commissioner and keep a copy of the same in their record.

ADs will obtain an undertaking from the exporters that consignment would be shipped within 90 days of the allocation of quota by the respective Cane Commissioner.

In addition, banks will ensure 100 percent advance receipt of export proceeds through banking channels, in case of Afghanistan. For other destinations, the export of sugar may be made against Letter of Credit (sight).

ADs will be required to submit sugar export transactions and shipment updates to the Director, FEOD, SBP-BSC, on weekly basis as per the described reporting format by every Friday at 1700 HRS.

The SBP has advised banks to bring the above instructions to the knowledge of all their constituents and ensure meticulous compliance.

Copyright Business Recorder, 2024