The State Bank of Pakistan (SBP) has advised all banks (Authorised Dealers in Foreign Exchange) to process the cases of sugar export. According to SBP's Exchange Policy Department (EPD) Circular Letter No 09 /EPP.1 (51)-Sugar - 2012, issued on Tuesday, export of some 200,000 tons of sugar will be allowed against each E-Form on first come first served basis and without any quantity restriction.
Sugar export by the individual sugar mill will be subject to receipt of a minimum 10 percent of total contract value as advance payment (evidencing by advance payment voucher, swift message and reporting schedule/credit advice) and exporter must ship the sugar within 60 days from the date of SBP approval or obtaining an irrevocable Letter of Credit with 60 days maturity from the buyer.
As per described criteria banks will forward the requests of sugar mills along attested photocopies of contract, E-Form, irrevocable LC 60 with days maturity or advance payment voucher, swift message and reporting schedule /credit advice, as the case may be, for SBP approval.
All requests should be addressed to the Director, Exchange Policy Department, State Bank of Pakistan, I. I. Chundrigar Road, Karachi and SBP will allow permission against each E-Form on first come first served basis. State Bank has asked banks to send sugar export update to the Director, Exchange Policy Department, State Bank of Pakistan on daily basis. While, incomplete requests will not be considered.