KARACHI: Pakistan is set to export 40,000 tons of sugar to Tajikistan under bilateral trade arrangements on a Business-to-Government (B2G) basis. Following directives from the federal government, the State Bank of Pakistan (SBP) has instructed banks to process the related transactions.
As per Ministry of Industries and Production’s Office Memorandum (O.M) F. No.1(6)/2022-23-CAO dated September 26, 2024, the Economic Coordination Committee (ECC) of the Cabinet has allowed export of 40,000 metric tons of sugar to Tajikistan on B2G basis as agreed between Pakistan Sugar Mills Association (PSMA) and Agency of State Material Reserves of Tajikistan (Tajik Agency).
Trading Corporation of Pakistan (TCP) will facilitate and coordinate with PSMA and with the Tajik Government to communicate names of the sugar mills designated to export sugar to Tajikistan on B2G arrangement.
ECC allows additional export of 500,000 MT of surplus sugar
Accordingly, the State Bank of Pakistan (SBP) has advised the bank to process the requests of eligible sugar mills for “Export of 40,000 MT of Sugar to Tajikistan”, subject to submission or fulfilment of the SBP’s conditions.
As per process, Authorized Dealers (ADs) will obtain proof of allocation of quota to the sugar mill by the PSMA and keep a copy of the same in their record. ADs will also obtain a copy of purchase contract or agreement between PSMA and Tajik Agency.
Banks will obtain an undertaking from the exporters that consignment would be shipped as per the mechanism agreed between PSMA and Tajik Agency and will also ensure 100 percent receipt of export proceeds in advance through banking channel, as per the agreed arrangements.
ADs are required to submit sugar export transactions and shipment updates to the Director, FEOD, SBP-BSC, Head Office Karachi on weekly basis as per the reporting format by every Friday at 1700 HRS.
SBP has advised banks to bring these instructions to the knowledge of all their constituents and ensure meticulous compliance.
It may be mentioned here that Pakistan has a surplus of sugar this year and is already exporting sugar to several countries. Last week, the federal government also allowed an additional export of some 0.5 million tons of sugar to enable the sugar mills to make the payments of the farmers and start the next season.
Copyright Business Recorder, 2024