SBP links wheat subsidy payment to export proceeds

RIZWAN BHATTI

KARACHI: The State Bank of Pakistan said Monday that payment of wheat export subsidies will be allowed only after full realization of export proceeds.

It advised authorized wheat dealers to process cases of eligible exporters for subsidy claims against export of wheat and wheat products in accordance with the conditions described by the State Bank.

Through a notification on Jan 25, the Ministry of National Food Security and Research had allowed export of wheat and wheat products. In accordance with the process, the dealers will forward shipment requests of wheat exporters in the prescribed format.

Attested copies of letters from Food Department of the provincial government confirming procurement of a specific quantity of wheat and wheat products by the exporters.

In addition, attested copies of the Export Proceeds Realization Certificate or Advance Payment Vouchers showing utilization will be required for subsidy claims.

Export of wheat, wheat flour and other wheat products will be allowed until March 15, to be determined by the filing date. The export process will be completed by May 15. The wheat export subsidy will be allowed only after full realization of export proceeds against Form-E/EFE.

The State Bank said the export of wheat and wheat flour produced from Oct 1, 2015 to Jan 12 last year will not be entitled to any cash support or subsidy.