ISLAMABAD: The State Bank of Pakistan (SBP) has issued instructions to the Authorised Dealers (ADs) for export of approved quantity of sugar on the basis of quota to be allocated on first come first served basis, sources in Commerce Ministry told Business Recorder.
The SBP has advised the Authorised Dealers to find Commerce Ministry’s Office Memorandum of January 18, 2023 in terms of export of sugar. In terms of the OM, the Government of Pakistan has allowed sugar mills to export 250,000 MT sugar as per stipulated terms and conditions.
The SBP has further asked the ADs to process the sugar export quota allocation cases for Punjab and KPK, as per the following mechanism: (a) ADs will forward the requests of sugar mills through the respective Group Heads to the Director, Foreign Exchange Operations Department (FEOD), SBP-Banking Services Corporation (BSC), Head Office, Karachi for approval quoting the reference of the circular letter along with the copies of the following documents (duly attested by the bank);(i) Clearance certificate issued by the concerned Cane Commissioner to the effect that concerned sugar mill has cleared outstanding dues of the farmers for sugarcane crop up to 2021-22;(ii) sugar export contract; and (iii) print out of electronically generated financial instrument for export through PSW.
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According to the SBP, incomplete requests shall not be considered whereas FEOD will allocate sugar export quota to the sugar mills on first come first served basis, based on the date/time of the case received through SBP Regulatory Approval System
The export by sugar mills will be strictly made through AD which has submitted the request for quota allocation. The AD will ensure that export by a sugar mill does not exceed the quota allocated to it. There shall be no provision of surrendering, transferring and amending the quota once allocated by FEOD.
The quota for sugar export for the province of Sindh will be allocated by the Cane Commissioner of the province. There will no subsidy by the federal/ provincial governments for export under the scheme. The ADs will ensure to obtain an irrevocable L/C from the buyer.
The export proceeds shall be realised within 60 days including shipment made out of quota for Sindh, to the Director FEOD, SBP-BSC, Head Office, Karachi on weekly basis as per the reporting format.
The SBP has advised the ADs to bring instructions to the knowledge of their constituents and ensure meticulous compliance of instructions.
Copyright Business Recorder, 2023