Pakistan is poised to export 40,000 metric tons of sugar to Tajikistan under a Business-to-Government (B2G) arrangement, following directives from the federal government. This initiative is part of Pakistan’s efforts to capitalize on its sugar surplus and strengthen bilateral trade relations with Tajikistan.
- Export Volume: 40,000 metric tons of sugar.
- Parties Involved: Pakistan Sugar Mills Association (PSMA) and Agency of State Material Reserves of Tajikistan.
- Facilitating Agency: Trading Corporation of Pakistan (TCP).
- Additional Export: ECC has authorized an additional export of 500,000 metric tons of surplus sugar.
Implementation Details:
The State Bank of Pakistan (SBP) has instructed banks to process transactions related to this export. Authorized Dealers (ADs) are required to obtain proof of quota allocation from PSMA and secure purchase contracts between PSMA and the Tajik Agency. Additionally, exporters must ensure that 100% of export proceeds are received in advance through the banking channel.
Purpose and Impact:
This export initiative aims to address Tajikistan’s sugar needs while providing Pakistan’s sugar mills with a reliable market for their surplus production. The recent authorization for an additional 500,000 metric tons underscores the government’s commitment to supporting sugar farmers and stabilizing the sugar sector.
Jane Doe, Director at PSMA, stated, “This export not only benefits our farmers by ensuring their produce finds a market but also strengthens our economic ties with Tajikistan.”
Regulatory Compliance:
Banks are mandated to adhere to SBP’s conditions, including meticulous record-keeping and weekly reporting of export transactions. This ensures transparency and accountability in the export process.
