The Pakistan Leather Garment Manufacturers and Exporters Association (Plgmea) has suggested that the export refinance Part-1 scheme should be simplified to allow the exporters to provide an undertaking and a demand promissory note at the time of obtaining loan. In a proposal, made by Plgmea Chairman Fawad Ijaz Khan to State Bank of Pakistan Governor Dr Ishrat Husain at a meeting held recently, said a Plgmea statement here on Monday.
He suggested that after the expiry of six-month period, the exporters should furnish the shipping documents of different shipments pertaining to the loan within one month of the expiry of the loan period, the statement said.
Fawad Ijaz Khan said that the SBP should only ensure that the exporter had actually made the shipment and the foreign exchange realised against the loan obtained by him.
"It is a common known fact that most of the loans, under the export refinance Part-1, were obtained on the basis of non-genuine contracts between the exporters and the buyers.
"Subsequently, the exporters had to go through a lot of formalities like substitution of contract, etc while making export shipments," the statement added.
Fawad pointed out that as per the recent trend in the leather garment exports, the buyers did not open letter of credits and in most cases they had their buying offices in the country.
These buyers sent the payment even before the shipment was made only after the garments were inspected and their quality was approved, he added.
He said that the shipments against advance payment were not entitled towards adjustment of the loans under Part-1 scheme.-PR
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