Pakistan returned to the export market earlier this year for the first time since 2009 and is becoming a significant exporter in Asia after Thailand. Its mills often sell abroad at a discount, which can exert downward pressure on global prices.

The latest tranche of exports has no quantitative restrictions on individual mills, but exporters need to ship quantities within 90 days after registering for exports, a government statement said on Tuesday.

"For the government and for mills, allowing exports was necessary. The government needs foreign exchange; mills need cash to pay farmers," said Muhammad Najib Balagamwala, chairman of Karachi-based SeaTrade group.

He said the fact there is no individual quota for mills would speed up exports.

"Currently export deals are getting done at $508 to 530 (per tonne). Saudi Arabia, Sudan, East African countries and Afghanistan are buying sugar," Balagamwala said.

March white sugar on Liffe was down 0.25 percent at $519.50 per tonne on Tuesday.

"Local prices are weak. To make money mills can offer a discount," an exporter based in Karachi said.

Pakistan is likely to produce 5 million tonnes of sugar in the October 2012 to end-September 2013 season, against local demand of around 4.3 million tonnes.