The Federal Government has transferred responsibility for cotton export oversight from the Trade Development Authority of Pakistan to the State Bank of Pakistan, tightening financial supervision while simplifying procedures.
The change has been formalised through S.R.O. 2486(I)/2025, issued by the Ministry of Commerce under the Imports and Exports (Control) Act, 1950, amending the Export Policy Order, 2022.
Under the revised rules for cotton exports (HS Code 5201.000):
- Exporters must deposit 1% of the total contract value as a security deposit with the State Bank of Pakistan.
- A confirmation letter from SBP must be presented to customs authorities along with shipping documents.
- Foreign buyers are required to open an irrevocable letter of credit (LC).
- The contracted cotton quantity must be shipped within 180 days of LC opening.
- If exporters fail to meet shipment obligations within the stipulated period, SBP will forfeit the security deposit proportionate to the unshipped quantity.
The amendment removes several earlier documentation requirements handled by TDAP, while shifting enforcement and financial accountability directly to the central bank. The move is aimed at improving contract compliance, ensuring timely shipments, and strengthening transparency in cotton exports.
