State Bank of Pakistan (SBP) on Thursday announced a new procedure to keep a check on sugar exports and ensure strict controls. The central bank advised all authorised dealers in foreign exchange to process cases of sugar export according to the instructions provided.
SBP wants banks to forward request of sugar mills with E-forms, contract, letter of credit, advance payments etc. Banks should maintain records to ensure compliance of maximum quota of 5,000 tons per sugar mill. The last date for applications is July 23, 2012 according to an Exchange Policy Department circular.
The maximum level of sugar export is 200,000 tons, as allowed by the government. A quantity not in excess of 5,000 tons shall be allowed to be exported by individual sugar mills on first come first served basis. The export shall be made only against E-Form. SBP will monitor exports and records to ensure stringent controls.
Published in The Express Tribune, June 15th, 2012.