AGL 37.99 Decreased By ▼ -0.16 (-0.42%)
AIRLINK 122.00 Increased By ▲ 0.49 (0.4%)
BOP 5.67 Decreased By ▼ -0.18 (-3.08%)
CNERGY 3.72 Decreased By ▼ -0.03 (-0.8%)
DCL 8.35 Decreased By ▼ -0.05 (-0.6%)
DFML 40.65 Decreased By ▼ -0.24 (-0.59%)
DGKC 84.74 Increased By ▲ 0.14 (0.17%)
FCCL 32.98 Increased By ▲ 0.28 (0.86%)
FFBL 65.87 Increased By ▲ 0.37 (0.56%)
FFL 10.06 Increased By ▲ 0.01 (0.1%)
HUBC 103.45 Decreased By ▼ -0.35 (-0.34%)
HUMNL 13.29 Increased By ▲ 0.04 (0.3%)
KEL 4.65 Increased By ▲ 0.22 (4.97%)
KOSM 7.06 Decreased By ▼ -0.03 (-0.42%)
MLCF 37.86 Increased By ▲ 0.36 (0.96%)
NBP 59.70 Decreased By ▼ -0.55 (-0.91%)
OGDC 177.55 Increased By ▲ 5.30 (3.08%)
PAEL 24.80 No Change ▼ 0.00 (0%)
PIBTL 5.72 Increased By ▲ 0.02 (0.35%)
PPL 149.30 Increased By ▲ 7.61 (5.37%)
PRL 22.70 Decreased By ▼ -0.02 (-0.09%)
PTC 14.80 Increased By ▲ 0.06 (0.41%)
SEARL 66.40 Increased By ▲ 1.84 (2.85%)
TELE 7.05 Decreased By ▼ -0.09 (-1.26%)
TOMCL 35.70 Increased By ▲ 0.20 (0.56%)
TPLP 7.37 Increased By ▲ 0.08 (1.1%)
TREET 13.98 Decreased By ▼ -0.22 (-1.55%)
TRG 50.80 Decreased By ▼ -0.95 (-1.84%)
UNITY 26.15 Decreased By ▼ -0.45 (-1.69%)
WTL 1.22 No Change ▼ 0.00 (0%)
BR100 9,602 Increased By 119.1 (1.26%)
BR30 28,838 Increased By 467 (1.65%)
KSE100 89,903 Increased By 936.3 (1.05%)
KSE30 28,144 Increased By 316.4 (1.14%)

unisameKARACHI: The Union of Small and Medium Enterprises (UNISAME) has advised the SME exporters to adopt the system of ESCROW transactions for exports to global destinations under which payment is held by a third party on behalf of the two transacting parties and released to the seller on delivery and inspection of goods by the buyer.

President UNISAME Zulfikar Thaver said SME exporters feel uncomfortable in exporting goods to unknown buyers and to secure themselves they are advised to transact business through ESCROW whereby as per arrangement money is delivered to a third party (ESCROW agent) to be held in trust pending the fulfilment of condition in a contract whereupon the ESCROW agent will deliver the payment to the seller.

Thaver said that buyers are not inclined to establish letter of credit in favour of sellers especially unknown sellers and in an ESCROW transaction they are assured that payment will be released to the sellers only when goods are received by them to their satisfaction and as per the order placed by them.

He said that ESCROW transactions are in vogue and practiced all over the globe and urged commercial banks to introduce ESCROW to facilitate SME exporters and secure their transactions under the system.

 

Copyright PPI (Pakistan Press International), 2011

 

Comments

Comments are closed.