The State Bank of Pakistan (SBP) has advised all authorised dealers in foreign exchange (banks) to process the cases of sugar export and get appropriate approval of all cases from SBP. SBP on Monday has issued outlines of mechanism for processing cases of sugar export and has directed all banks to process the sugar export cases as per mechanism described by the central bank.
According to procedure, banks will forward the requests of sugar mills along with photocopy of E-Form, copy of contract, letter of credit, advance payment, etc for approval of SBP. While forwarding such requests banks should also maintain the record of each sugar mill to ensure compliance of maximum prescribed quota of 5,000 tons per sugar mill.
SBP will allow permission against each E-Form on first come first served basis and bank will send all requests and sugar export update to Director, Exchange Policy Department, SBP, I I Chundrigar Road Karachi, on weekly basis. The SBP, however, has made its clear that incomplete requests and applications received after April 15, 2012 will not be entertained.
In this regard, the SBP has issued EPD Circular Letter No 03/EPP.1 (51)-Sugar-2012 dated March 5, to the all banks to implement on the guidelines. It may be recalled that the Government of Pakistan has allowed export of sugar with some terms & conditions and according to details only 100,000 tons of sugar will be exported through sugar mills.
A quantity not in excess of 5,000 tons shall be allowed to be exported by individual sugar mills on first come first served basis. The export shall be made only against E-Form and the SBP will monitor the export and no E-Form shall be issued in excess of individual and cumulative ceilings mentioned above.
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