State Bank of Pakistan (SBP) Tuesday advised all authorized dealers in foreign exchange (banks) to process the cases of sugar export as per the specified mechanism. Under the mechanism, the central bank said, only 200,000 tons of sugar would be exported.
The sugar allowed to be exported by the individual sugar mill would be subject to either receipt of a minimum 10% 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 LC 60 days maturity from the buyer.
The banks would forward the requests of Sugar Mills along with attested photocopies of contract, E-Form, irrevocable LC 60 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 of the SBP. The SBP would allow permission against each E-Form on first come first served basis. The banks would send sugar export update to the concerned department of the SBP on daily basis. Incomplete requests would not be considered, said the central bank in a circular issued on Tuesday.
Careful with the sugar!
