The State Bank of Pakistan (SBP) has outlined mechanism for all authorized dealers in foreign exchange (banks) for the export of sugar, making E-Form as mandatory requirement.

According to SBP here Monday, banks will forward the requests of sugar mills along with photocopy of E-Form, copy of contract, L/C, advance payment, etc. for approval of SBP.

While forwarding such requests banks should also maintain the record of each sugar mill to ensure compliance of maximum prescribed quota of 5,000 tons per sugar mill.

It may be recalled that the government of Pakistan has allowed export of 100,000 tons of sugar on prescribed terms and conditions.

According to the outlined mechanism, all requests should be addressed to Director, Exchange Policy Department, State Bank of Pakistan, I.I. Chundrigar Road, Karachi.

SBP will allow permission against each E-Form on first come first served basis.

Bank will send sugar export update to Director, Exchange Policy Department, State Bank of Pakistan, I.I. Chundrigar Road, Karachi on weekly basis.

Applications received after April 15, 2012 will not be entertained, says EPD Circular Letter No.03/EPP.1(51)-Sugar-2012 dated the 5th March, 2012.

A quantity not in excess of 5,000/- tons shall be allowed to be exported by individual sugar mills on first come first served basis.

SBP said that export shall be made only against E-Form.

The State Bank of Pakistan will monitor the export and no E-Form shall be issued in excess of individual and cumulative ceilings mentioned above.