KARACHI: The State Bank of Pakistan (SBP) on Friday announced procedure for sugar export and advised all banks to get appropriate approval of all sugar export cases from the central bank.

The Ministry of Commerce has already allowed 0.2 million tons of sugar export and a Public Notice No. 7(2)/2012-E-III on October 12, 2012 was issued for information. As per federal government directives the State Bank will monitor the export of sugar and no E-Form will be issued in excess of individual and cumulative ceiling, announced by the federal government. 

Cumulative ceiling for the sugar export is 200,000 tons, while a quantity not in excess of 10,000 tons will be allowed to be exported by individual sugar mills.

According to SBP EPD Circular Letter No.08/EPP.1(51)-Sugar-2012 issued on Friday authorized dealers in foreign exchange (banks) will forward all requests of sugar mills for sugar export along with photocopy of E-Form, copy of contract, letter of credit, advance payment, etc, to SBP for approval. While, forwarding such requests, banks will also maintain the record of each sugar mill to ensure compliance of maximum prescribed quota of 10,000 tons per sugar mill.

Banks have been advised to send all requests and sugar export update to Director, Exchange Policy Department, State Bank of Pakistan, I I Chundrigar Road, Karachi on a daily basis. While, the SBP will grant permission against each E-Form on first come first served basis.

The export will be made only against E-Form and the State Bank will monitor the export to restrict issuance of E-Form in excess of individual and cumulative ceilings.

The SBP has also made it clear that incomplete requests will not be considered and asked authorized dealers to bring the same to the notice of all their constituents.