July 02, 2024: Following the federal government’s endorsement to export 150,000 metric tons of sugar, the State Bank of Pakistan has outlined specific guidelines for Authorized Dealers , instructing them to process applications from eligible exporters upon fulfillment of certain conditions.
Authorized Dealers are required to obtain documentary evidence of quota allocation from the Provincial Cane Commissioner and maintain a record of the same.
Additionally, ADs must secure a commitment from exporters that the sugar consignment will be shipped within 45 days from the date of quota allocation.
Furthermore, ADs must ensure full receipt of export proceeds in advance through the standard banking channels from overseas buyers, based on valid sales contracts, prior to shipment.
As part of ongoing monitoring, ADs are mandated to report sugar export transactions and shipment updates weekly to the Director, FEOD, SBP-BSC, Head Office, Karachi, by every Friday at 1700 HRS.
In light of these directives, the previous instructions issued in EPD Circular Letter No. 06 dated January 30, 2023 on the subject are deemed obsolete, according to the central bank.
“ADs are urged to communicate these guidelines to all concerned parties and ensure strict adherence,” concluded SBP’s circular.
Previously, the Economic Coordination Committee (ECC) had conditionally approved the Ministry of Industries & Production to export 150,000 metric tons of surplus sugar in its meeting held on June 13, 2024. This approval stipulated that any rise in the retail price of sugar would result in the revocation of export permissions.
