ANNOUNCEMENT 14 Sep 2017

Pakistan's Economic Coordinations Committee has announced an export quota and freight support for sugar exports.

NUMBER OF INTERVENTIONS

2

  • 1 harmful
  • 0 neutral
  • 1 liberalising

SOURCE

Ministry of Commerce's Office Memorandum No. 7(2)/2012-Exp.III dated 3 October 2017
http://www.sbp.org.pk/epd/2017/FECL20-OM.pdf

State Bank of Pakistan notification and guidelines
http://www.sbp.org.pk/epd/2017/FECL20.htm

Inception date: 11 Oct 2017 | Removal date: open ended

Export quota

The Economic Coordinations Committee of Pakistan has through Case No. ECC-96/19/2017 allowed exports of 500,000 metric tons of sugar. An export quota of 300,000 metric tons announced on 18 July 2017 has been withdrawn, with this state act.

The guidelines, published by the State Bank of Pakistan, provide that the quota will be alloted on a first come first served basis, that at least 15% advance payment or an irrevocable letter of credit is required from the buyer, and that all payments necessarily have to be made through bank wire transfers. Further, the Ministry documents require that post November 2017, in order to be eligible for exports the mills will be required to start crushing at full capacity throughout the crushing season.

The inception date for this state act has been set as the date the State Bank has published the conditions for processing applications.

AFFECTED SECTORS

 

AFFECTED PRODUCTS

 
Inception date: 11 Oct 2017 | Removal date: open ended

Other export incentive

Additionally an export freight support of a maximum of Rs. 10.70/kg. (~USD 0.102)* has been announced. The support will be given on a sliding scale between the international price of USD 376/MT as on 8 September 2017 and USD 499/MT, which is according to the Ministry of Industries and Production the international sugar price that meets the cost of production. A price of USD 376 will get the full support while a price of USD 499 will get no freight support.

The inception date for this state act has been set as the date the State Bank has published the conditions for processing applications.

* PKR to USD conversion as on 8 September 2017 - 1 USD = 105.3 PKR