Pakistan : SBP allows forex dealers to process more sugar export requests
The State Bank of Pakistan (SBP) approved the export of an additional 100,000 metric tons of sugar and instructed authorized foreign exchange dealers to process requests accordingly. Exporters allocated quotas by Provincial Cane Commissioners must ship their consignments within 60 days of allocation. Dealers must obtain proof of quota allocation and ensure compliance with specific conditions, including using Letters of Credit for exports outside Afghanistan and requiring 100% advance payment for exports to Afghanistan.
The State Bank of Pakistan (SBP) gave the go-ahead for the export of an additional 100,000 metric tons of sugar and advised authorized foreign exchange dealers to process requests accordingly.
Aspiring exporters, who have been allocated quotas by their respective Provincial Cane Commissioners and have issued Letters of Credit (LCs), must ensure the shipment of their consignments within 60 days of quota allocation.
In a circular letter from its Exchange Policy Department, the central bank instructed authorized dealers to process the requests of eligible applicants for the “Export of Further 100,000 MT of Sugar,” subject to the fulfillment of specific requirements.
Referring to a Ministry of Industries and Production Office Memorandum, which ratified the federal government’s approval of the Economic Coordination Committee’s (ECC) decision to allow further sugar exports, the SBP advised authorized dealers to ensure compliance with several conditions.
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Authorized dealers are required to obtain proof of quota allocation from the respective Provincial Cane Commissioner and retain a copy for their records. Exporters must also provide an undertaking to ensure the shipment of the consignment within 60 days of quota allocation.
For exports to destinations other than Afghanistan, sugar shipments must be made against a Letter of Credit. In the case of exports to Afghanistan, authorized dealers are required to ensure 100% advance receipt of export proceeds through banking channels.
The central bank has also directed authorized dealers to submit weekly updates on sugar export transactions and shipments to the relevant SBP Director, using the prescribed reporting format. Furthermore, the SBP instructed dealers to inform their constituents of these guidelines and ensure strict compliance.
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Source Link : https://profit.pakistantoday.com.pk/2024/10/01/sbp-allows-forex-dealers-to-process-more-sugar-export-requests/
