The federal government has transferred responsibility for regulating cotton exports from the Trade Development Authority of Pakistan (TDAP) to the State Bank of Pakistan (SBP), introducing stricter financial conditions for exporters.
The change was notified through S.R.O. 2486(I)/2025 issued by the Ministry of Commerce, amending the Export Policy Order, 2022 under the Imports and Exports (Control) Act, 1950.
Under the revised framework, cotton exporters will be required to place a security deposit equivalent to 1% of the contract value with the State Bank of Pakistan. Exporters must also present a confirmation letter issued by the SBP to customs authorities along with shipping documents.
In addition, buyers will be required to open an irrevocable letter of credit, and exporters must complete shipment of the contracted quantity within 180 days of opening the LC.
The notification states that in cases where exporters fail to ship the full contracted quantity within the stipulated period, the SBP will forfeit the security deposit in proportion to the quantity that remains unshipped.
Previously, cotton export matters were handled by the Trade Development Authority of Pakistan. The revised arrangement places greater regulatory and financial oversight with the central bank, aimed at ensuring contract compliance and timely execution of exports.
It’s a very wonderful and useful piece of knowledge. I’m delighted you shared this important knowledge with us. Please keep us updated like this.Thank you for sharing.