SBP directs banks to facilitate sugar export

The State Bank of Pakistan (SBP) has advised all banks to facilitate the export of sugar but to ensure proceeds are received before shipments are exported. In a circular on Tuesday, the central bank said the Economic Coordination Committee (ECC) of the Cabinet has allowed the export of 150,000 tonnes of sugar with specific terms and conditions. The decision was taken just two days before the 2024-25 federal budget announcement. The decision to export sugar has political implications, leading to higher domestic market prices. In FY23, sugar export was permitted, resulting in an 80pc surge in domestic prices. The Pakistan Sugar Mills Association, with a deep presence in the power corridor at both the federal and provincial levels, has managed to pressure the government into allowing the sweetener export.