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KARACHI: The State Bank of Pakistan (SBP) has announced the sugar export mechanism, making it mandatory for the sugar mills to bring the sugar export proceeds into Pakistan within 60 days of the opening of Letter of Credit (LC).
The State Bank has directed the banks to handle the export of sugar cases in accordance with the permitted quota allocation, per the instructions of the federal government. According to Office Memorandum (O.M.) No. 7(2)/2012-Exp-III from the Ministry of Commerce, sugar mills are now permitted to export up to 250,000 MT (two hundred fifty thousand metric tons) of sugar.
Accordingly, the SBP has advised the banks to process the export of sugar quota allocation cases, as per state bank mechanism.
SBP has directed that the Authorized Dealers (banks) will ensure to obtain an irrevocable LC from the buyer and the export proceeds will be realized within 60 days of opening of LC. While calculating a period of 60 days, both days of LC opening and realization will be included, the SBP said in a circular issued to the bank.
It may be mentioned here that recently, the ECC of the Cabinet has allowed export of 250,000 metric tons of sugar, inclusive of the previously approved quantity of 100,000 metric tons.