SBP sets mechanism for export of 0.5m MT sugar | Pakistan Today

SBP sets mechanism for export of 0.5m MT sugar

The government of Pakistan has allowed the millers to export 0.5 million metric tonnes (MT) of sugar as per the given terms and conditions.

Accordingly, the State Bank of Pakistan (SBP) has advised the authorised dealers (ADs) to process the export of sugar cases as per following mechanism.

The dealers would forward the requests of sugar mills through their respective departmental/business/group heads to the director exchange policy department of SBP for approval.

The ADs would have to quote in the requests the reference of the circular letter along with the attested, authenticated copies of the required documents.

The documents required include clearance issued by the concerned cane commissioner to the effect that concerned sugar mill had cleared outstanding arrears of the growers, sugar export contract; E-Form and irrevocable L/C or advance payment voucher, swift message and reporting schedule/credit advice, as the case may be.

The central bank would permit against each E-Form on first come first served basis. ADs would ensure receipt of a minimum 15 percent of total contract value as advance payment or obtain an irrevocable L/C from the buyer.

The exporter must ship the sugar within 45 days from the date of SBP’s approval or by March 31 next year, whichever comes earlier.

The ADs shall ensure to forfeit 15 percent advance payment in favour of federal government in case of non-performance within the stipulated time.

The dealers would submit sugar export shipment update to the State Bank on weekly basis as per the enclosed reporting format.



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