Circulars/Notifications - Exchange Policy Department  
 EPD Circular Letter No. 20 of 2015

December 28, 2015

The Presidents/Chief Executives of all
Authorized Dealers in Foreign Exchange

Dear Sirs/Madam,


Authorized Dealers (ADs) may find enclosed Ministry of Commerce’s Office Memorandum No. 7(2)/2012-E.III dated December 14, 2015 regarding the above subject in terms of which Government of Pakistan has allowed sugar mills to export 500,000 MT sugar as per the terms and conditions mentioned therein.

2. Accordingly, ADs are advised to process the export of sugar cases as per following mechanism:

a. ADs will forward the requests of sugar mills through their respective Departmental/ Business/Group Heads to the Director, Exchange Policy Department, State Bank of Pakistan, Karachi for approval quoting the reference of this circular letter along with the attested/ authenticated copies of the following documents:

 i. Clearance issued by the concerned Cane Commissioner to the effect that concerned sugar mill has cleared outstanding dues of the farmers upto the last season and has started crushing on full scale.
ii. Sugar export contract.
iii. Manual Form-E or print out of EFE request in case of electronically generated Form-E through WeBOC.
iv. Irrevocable L/C or advance payment voucher, swift message and reporting schedule/credit advice, as the case may be.

b. SBP will allocate sugar export quota to sugar mills on first come first served basis.

c. ADs will ensure receipt of a minimum 15% of total contract value as advance payment (evidenced by advance payment voucher, swift message and reporting schedule/credit advice) or obtain an irrevocable L/C from the buyer.

d. All exports including those destined for Afghanistan and Central Asian Republics by land route will be subject to receipt of export proceeds by wire transfer through banking channel.

e. Exporter must ship the sugar within 45 days from the date of SBP approval or by March 31, 2016, whichever comes earlier.

f. ADs shall ensure to forfeit 15% advance payment in favour of Government of Pakistan in case of non-performance within the stipulated time.

g. ADs will submit sugar export shipment update to the Director, Exchange Policy Department, State Bank of Pakistan, Karachi on weekly basis as per the enclosed reporting format at [email protected].

3. Incomplete requests shall not be considered.

4. Authorized Dealers are advised to bring the same to the notice of all their constituents.

Encls: As above 

Yours truly,


(Fazal Mahmood)

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