Key Takeaways
- The State Bank of Pakistan (SBP) directed commercial banks to halt sugar exports from mills in Khyber Pakhtunkhwa.
- The provincial government's endorsement is still awaited before exports can resume.
- The ECC allowed export of 200,000 MT of sugar with certain conditions.
The State Bank of Pakistan (SBP) has instructed commercial banks to suspend sugar exports from mills located in Khyber Pakhtunkhwa (KP) until the provincial administration gives its approval. This directive is part of a broader set of instructions issued in a circular titled ‘Revised Instructions – Export of 200,000 MT of Sugar’.
According to the SBP, the Government of Punjab and Government of Sindh have already endorsed the revised quotas for sugar mills in their respective territories. However, the endorsement from the KP government is pending. The SBP stated that authorised dealers may process export transactions for eligible sugar mills in Punjab and Sindh based on their revised quotas, subject to certain conditions.
The SBP noted that the Ministry of National Food Security & Research (MNFSR) communicated the revised province and mill-wise sugar export quotas to the SBP on October 9, 2026. Additionally, the MNFSR corrected the names of three sugar mills.
Earlier in September 2026, the Economic Coordination Committee (ECC) of the Cabinet allowed the export of 200,000 MT of sugar with specific terms and conditions. This decision was subsequently ratified by the Federal Cabinet.
The SBP’s circular further stated that authorised dealers should process export transactions for eligible sugar mills in KP only after receiving confirmation from the MNFSR. Until then, all export transactions from KP mills are on hold.
The SBP’s directive aims to ensure that sugar exports are managed in a manner that aligns with provincial and national policies. The move is part of a broader strategy to regulate the sugar export market and ensure fair distribution and availability of the commodity.
Industry stakeholders are closely monitoring the situation, with many awaiting the provincial government’s endorsement to resume exports. The delay in the process could impact the supply chain and potentially affect the prices of sugar in the market.
The SBP’s instructions are in line with its ongoing efforts to maintain market stability and ensure that the sugar export process is transparent and regulated.
