SBP issues guidelines for export of 200,000 MT sugar

October 4, 2026 (MLN): The State Bank of Pakistan (SBP) has advised authorized dealers in foreign exchange to process the requests of eligible sugar mills for the export of 200,000 metric tons of sugar, subject to a set of conditions, including payment through sight letter of credit or advance payment and shipment by sea only.

In a circular issued to the presidents and chief executives of authorized dealers, the central bank said the Economic Coordination Committee of the Cabinet had cleared the export of the sugar quantity on certain terms, a decision later ratified by the Federal Cabinet.

The Ministry of National Food Security & Research conveyed the decision through its letter dated September 23, 2026, and followed it with an office memorandum dated October 1, 2026, spelling out how the export quota is to be implemented.

Under the instructions, banks must process financial instrument issuance requests of exporters strictly in line with the mill-wise quota allocated by the association.

Exports will be allowed only against a sight letter of credit or advance payment, and the sugar can be shipped only by sea.

No deadline has been fixed for shipments, while export proceeds against letters of credit must be realized within the time period prescribed by the central bank.

SBP also directed authorized dealers to send details of sugar export transactions and shipment updates every week to the Director, FEOD, SBP-BSC, Head Office, Karachi. The reports, to be prepared in the enclosed Annexure-A format, are due by 1600 hours every Friday at the designated email address.

The central bank further asked banks to carry out due diligence and satisfy themselves about the bona fides of their clients and the underlying transactions in line with applicable regulations.

Authorized dealers were also told to bring the instructions to the notice of all their constituents and ensure strict compliance.

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