SBP issues conditions for exporting 150,000 MT of sugar

July 02, 2024 (MLN): Given the federal government's approval to export 150,000 MT of sugar, the State Bank of Pakistan (SBP) has issued certain conditions to Authorized Dealers (ADs), advising them to process the requests of eligible applicants upon fulfillment.

Accordingly, 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 also obtain an undertaking from the exporters that the consignment would be shipped within 45 days from the date of quota allocation.

Moreover, ADs will ensure 100% receipt of export proceeds in advance from the buyer abroad through the normal banking channel, before the shipment takes place, based on valid sales contract.

Lastly, ADs will submit sugar export transactions and shipment updates to the Director, FEOD, SBP-BSC, Head Office, Karachi on a weekly basis every Friday at 1700 HRS.

In view of the foregoing, the earlier instructions contained in EPD Circular Letter No. 06 dated January 30, 2023 on the captioned subject stand superseded, the central bank said.

“ADs are advised to bring the above instructions to the knowledge of all their constituents and ensure meticulous compliance there against,” SBP’s circular concludes.

To recall, the Economic Coordination Committee (ECC) granted conditional approval to the Ministry of Industries & Production for the export of 0.15 million (150,000) metric tons of surplus sugar in its meeting held on June 13, 2024.

The condition set by the committee was that if there was an increase in the retail price of sugar, the export permission would be revoked.

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