SBP issues guidelines for export of 200,000 MT sugar

The State Bank of Pakistan has instructed banks to handle export applications from eligible sugar mills covering 200,000 metric tonnes, as reported by Mettis Global. Exporters must be paid either via a sight LC or in advance, and the consignments can only travel by sea.

A circular from the central bank to bank chief executives says the Economic Coordination Committee approved the export on certain terms, and the Federal Cabinet later ratified that decision. The National Food Security & Research Ministry passed the decision on through a September 23, 2026 letter, then issued an October 1 memorandum on quota implementation. No shipment deadline has been fixed, though letter of credit proceeds must be realised within the period the central bank prescribes.

Banks must issue financial instruments only within the mill-wise quotas that the association has assigned to each mill, and submit weekly reports on sugar export transactions and shipments to the SBP every Friday by 1600 hours. Lenders must also carry out due diligence on the bona fides of clients and underlying transactions under applicable rules, and pass the instructions to all constituents.