The government has transferred the matters related to cotton exports from the Trade Development Authority of Pakistan (TDAP) to the State Bank of Pakistan (SBP).
According to sources, in this regard, the Ministry of Commerce has issued an S.R.O. (S.R.O. 2486(1)/2025), which states that under the powers conferred by Section 3(1) of the Imports and Exports (Control) Act, 1950, the federal government has directed amendments in the Export Policy Order, 2022, as follows:
In serial number 9, column (4), it will now be stated that:
(i) A security deposit equivalent to 1% of the total contract value must be submitted to the State Bank of Pakistan, and a verification document issued by the State Bank must be presented to customs authorities along with the shipping documents.
(ii) An irrevocable Letter of Credit must be opened by the buyer (importer), and the contracted quantity must be shipped within 180 days. If the contract is not executed within the stipulated time, the State Bank of Pakistan will forfeit the security deposit in proportion to the quantity not exported.
