SBP directs banks to put on hold sugar exports by mills located in Khyber Pakhtunkhwa
The State Bank of Pakistan (SBP) directed commercial banks on Tuesday to put sugar exports by the mills located in Khyber Pakhtunkhwa’s (KP) on hold till the provincial administration endorses the overseas sales of the commodity. In a circular titled ‘Revised Instructions - Export of 200,000 MT [Metric Ton] of Sugar’, the central bank asked commercial banks to process export transaction of the…
The State Bank of Pakistan has instructed commercial banks to temporarily halt sugar exports by mills situated in Khyber Pakhtunkhwa (KP) until the provincial administration confirms the overseas sales of the commodity. A circular titled 'Revised Instructions - Export of 200,000 MT of Sugar' was issued by the central bank, urging commercial banks to handle export transactions of the commodity through eligible sugar mills located in Punjab and Sindh.
The governments of Punjab and Sindh have previously approved the revised quotas for sugar mills within their respective provinces. However, the confirmation from the KP government is still pending. Once the KP authorities provide their endorsement, commercial banks will process export transactions of approved sugar mills in KP, adhering to the applicable conditions.
The Ministry of National Food Security & Research had communicated the revised province and mill-wise sugar export quotas to the SBP on October 09, 2026, along with the correction of three sugar mill names. In September 2026, the Economic Coordination Committee of the Cabinet permitted the export of 200,000 MT of sugar, subject to certain terms and conditions, which has since been approved by the Federal Cabinet.
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