Pakistan has moved cotton exports under the regulatory framework of the State Bank of Pakistan (SBP), introducing stricter trade safeguards to enhance financial discipline and reduce risk. Under the new policy, exporters are required to submit a 1% security deposit, open a mandatory irrevocable Letter of Credit (LC), and complete shipments within a 180-day timeframe.
The measures aim to ensure transparency, timely foreign exchange realization, and greater compliance with banking and export regulations. Officials say the reforms will help curb speculative trading, protect exporters and buyers, and strengthen confidence in Pakistan’s cotton trade.
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By placing cotton exports under SBP supervision, the government seeks to stabilize the sector, improve payment security, and align export practices with international standards, supporting sustainable growth in one of Pakistan’s key agricultural industries.
