SBP directs banks to put on hold sugar exports by mills located in Khyber Pakhtunkhwa

The State Bank of Pakistan (SBP) directed commercial banks on Tuesday to put sugar exports by the mills located in Khyber Pakhtunkhwa’s (KP) on hold till the provincial administration endorses the overseas sales of the commodity.

In a circular titled ‘Revised Instructions - Export of 200,000 MT [Metric Ton] of Sugar’, the central bank asked commercial banks to process export transaction of the commodity by eligible sugar mills located in Punjab and Sindh after the two provincial governments endorsed the revised quotas of sugar mills located in their respective territories.

“The Government of Punjab and Government of Sindh have endorsed the revised quotas of sugar mills located in their respective provinces. The endorsement from the Government of Khyber Pakhtunkhwa (KP) is still awaited. Accordingly, authorised dealers [commercial banks] may process the export transactions of eligible sugar mills of Punjab and Sindh as per their revised quotas, subject to [applicable] conditions,” according to the circular.

“The endorsement of revised quota by the Government of KP will be communicated as and when received from MNFSR [Ministry of National Food Security & Research]. Accordingly, the authorised dealers shall process export transactions of eligible sugar mills located in KP after receipt of this confirmation.”

SBP said the MNFSR on October 09, 2026 had communicated the revised province and mill-wise sugar export quotas received from Pakistan Sugar Mills Association (PSMA), along with the correction to the names of three sugar mills.

Earlier in September 2026, the Economic Coordination Committee (ECC) of the Cabinet allowed export of 200,000 MT of sugar with certain terms and conditions. The ECC’s decision has also been ratified by the Federal Cabinet.