The federal government has shifted responsibility for cotton export matters from the Trade Development Authority of Pakistan (TDAP) to the State Bank of Pakistan (SBP). The move was officially notified through S.R.O. 2486(I)/2025 under the Imports and Exports Control Act, 1950, amending the Export Policy Order.
Under the new regulations, cotton exporters must deposit 1 percent of the contract value as security with SBP. Exporters are also required to present a confirmation letter from SBP to customs authorities along with shipping documents. Buyers must open an irrevocable letter of credit, and exporters must complete shipments within 180 days, failing which the SBP will forfeit the deposit proportionally.
Previously managed by TDAP, the oversight shift aims to strengthen monitoring, improve compliance, and ensure timely execution of export contracts in the cotton sector, according to officials. This step is expected to enhance accountability and streamline cotton export operations nationwide.
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