The State Bank of Pakistan has authorised banks to process eligible sugar export transactions from KP mills following the provincial government’s endorsement of their quotas.
Karachi, October 28, 2026: The State Bank of Pakistan (SBP) has allowed authorised dealers to process sugar export transactions for eligible mills in Khyber Pakhtunkhwa (KP) under the government’s approved quota for exporting 200,000 metric tonnes of sugar.
In a circular issued on October 28, the central bank said the Ministry of National Food Security and Research (MNFSR) had confirmed that the KP government had endorsed the export quotas allocated to sugar mills in the province.
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The confirmation was conveyed through the ministry’s Office Memorandum No. 19(12)/EXPORT/PED/API-0004, dated October 25, 2026.
The SBP said the quota allocation details had already been communicated to authorised dealers through its EPD Circular Letter No. 15, dated October 13, 2026.
Following the provincial government’s endorsement, authorised dealers may process export transactions for eligible sugar mills located in KP against their respective quotas.
However, the transactions must comply with the terms and conditions specified in the SBP circular dated October 13, as well as the relevant instructions contained in the MNFSR’s Office Memorandum dated October 9, 2026.
The ministry’s earlier memorandum concerned decisions relating to the allocation of export quotas for 200,000 metric tonnes of sugar, the shipment deadline and the mechanism for realising and reporting export proceeds.
According to the ministry, the KP government’s endorsement of the quotas allocated to provincial sugar mills had been received and attached to the memorandum. The ministry subsequently requested the SBP to issue the necessary instructions to authorised dealers and concerned banks to implement the relevant decisions.
The central bank clarified that all other instructions contained in its earlier circular letter would remain unchanged.
SBP has advised authorised dealers to ensure strict compliance with the revised instructions while processing eligible sugar export transactions.
The development clarifies the procedural position for sugar mills in KP seeking to export under the approved quota, subject to the applicable conditions and requirements governing the wider export arrangement.