The State Bank of Pakistan (SBP) has directed all banks to process the requests of eligible Authorized Dealers (ADs) to export an additional 500,000 metric tons of Sugar.
On Tuesday, the Economic Coordination Committee (ECC) approved the export of an additional 500,000 metric tons of sugar, following a directive from the Ministry of Industries and Production. The federal cabinet later ratified the ECC’s decision.
“Attention of Authorized Dealers (ADs) is invited towards the enclosed Ministry of Industries and Production’s Office Memorandum (O.M) F. No.1(6)/2022-23-CAO dated October 12, 2024. As per the O.M., the Economic Coordination Committee (ECC) of the Cabinet has allowed the export of a further 500,000 MT of sugar with certain terms and conditions. The ECC’s decision has also been ratified by the Federal Cabinet,” the SBP said in a circular.
According to the SBP directive, authorized dealers will obtain an undertaking from the exporters that the consignment would be shipped within 90 days of the allocation of quota by the respective Cane Commissioner.
ADs will ensure 100% advance receipt of export proceeds through banking channels, in the case of Afghanistan. For other destinations, the export of sugar may be made against a Letter of Credit (LC).
Furthermore, authorized dealers will submit sugar export transactions and shipment updates to the State Bank of Pakistan’s Director of the Financial Enforcement Department, ensuring transparency and regular monitoring of the export process.
ADs are advised to bring the above instructions to the knowledge of all their constituents and ensure meticulous compliance thereagainst.
According to a report by Profit, of the total 500,000 tonnes, 64% of the export quota has been allocated to sugar mills in Punjab, with 41 mills allowed to export 320,000 tonnes of sugar. Among them, Hamza Sugar Mills of Rahim Yar Khan will export 21,642 tonnes, while Makkah Sugar Mills is allotted 592 tonnes. Sindh’s sugar mills will export 150,000 tonnes, making up 30% of the total quota, and Khyber Pakhtunkhwa mills will export 30,000 tonnes, representing 6% of the allocation.
