Karachi January 21 2022: Government of Pakistan issued mechanism for export of sugar and instruct exporters to bring dollars in 60 days after opening of LCs.
Government of Pakistan has allowed sugar mills to export 250,000 MT (Two Hundred Fifty Thousand Metric Ton) sugar as per the terms and conditions mentioned therein
Authorized Dealers are advised to process the export of sugar quota allocation cases for Punjab and KPK.
Authorized Dealers will forward the requests of sugar mills through their respective Group Heads to the Director, Foreign Exchange Operations Department (FEOD), SBP-Banking Services Corporation (BSC), Head Office, Karachi for approval quoting the reference of this circular letter along with the copies of the following documents (duly attested by the bank).
- Clearance Certificate issued by the concerned Cane Commissioner to the effect that concerned sugar mill has cleared outstanding dues of the farmers for sugarcane crop upto 2021-22
- sugar export contract.
- Print out of electronically generated Financial Instrument for export through PSW.
Incomplete requests shall not be considered.
FEOD will allocate sugar export quota to the sugar mills on first come first served basis, based on the date/time of the case received through SBP Regulatory Approval System.
The export by sugar mill will strictly be made through the AD that has submitted the request for quota allocation. The AD will ensure that export by a sugar mill does not exceed the quota allocated to it.
There shall be no provision of surrendering, transferring and amending the quota once allocated by FEOD.
The quota for sugar export for the province of Sindh will be allocated by Cane Commissioner of the province.
There will be no subsidy by the Federal/ Provincial Governments for export under the above scheme.
Authorized Dealers will ensure to obtain an irrevocable L/C from the buyer.
The export proceeds shall be realized within 60 days of opening of LC. While calculating period of 60 days, both days of LC opening and realization will be included.