SBP asks banks to handle requests for export of 40,000 tonnes of sugar to Tajikistan

KARACHI: The State Bank of Pakistan instructed banks on Friday to process the requests of eligible sugar mills for the export of 40,000 metric tonnes of sugar to Tajikistan, a circular said.

Last month, the Economic Coordination Committee (ECC) of the cabinet allowed the export of 40,000 metric tonnes of sugar to Tajikistan, as agreed between the two governments on bilateral trade arrangements under a business-to-government (B2G) basis -- between the Pakistan Sugar Mills Association (PSMA) and the Agency of State Material Reserves of Tajikistan (Tajik Agency). The ECC’s decision has also been ratified by the federal cabinet.

Considering this, banks or authorised dealers (ADs) are advised to handle the requests of eligible sugar mills for the shipment of 40,000MT of sugar to Tajikistan, provided that the necessary conditions are met. As per the SBP’s circular, the ADs would acquire evidence of the quota allocation to the sugar mill from the PSMA and keep a copy of the same for their records.

The SBP said the ADs will obtain a copy of the purchase contract/agreement between the PSMA and Tajik Agency.“ADs will obtain an undertaking from exporters that consignment would be shipped as per the mechanism agreed between the PSMA and Tajik Agency,” it said.“ADs will ensure 100 per cent receipt of export proceeds in advance through banking channel, as per the agreed arrangements,” it added.