SBP Makes Changes to Sugar Export Mechanism

The State Bank of Pakistan (SBP) has issued new instructions to the Authorized Dealers (ADs) for the export of approved quantities of sugar. The Authorized Dealers will obtain proof of allocation of quota by the respective Provincial Cane Commissioner and keep a copy of the allocation in their record, a notification issued by the central bank stated. ADs will obtain an undertaking from the exporters that the consignment would be shipped within 45 days from the date of quota allocation. ADs will ensure receipt of Irrevocable L/C confirming that payment shall be received within sixty (60) days of the opening of the Letter of Credit, or advance receipt of export proceeds from the buyer abroad through banking channels. ADs will submit sugar export transactions and shipment updates to the Director, FEOD, SBP-BSC, and relevant offices. The Economic Coordination Committee (ECC) of the Cabinet recently approved revised conditions regarding the export of sugar.