Rice exporters advised to focus on quality: Rs 40 billion of export refinance not utilised by banks: SBP

The State Bank of Pakistan (SBP) Governor, Salim Raza, has said that around Rs 40 billion in the account of is not being utilised by the commercial banks. Speaking at a luncheon meeting with members of Rice Exporters Association of Pakistan (Reap) here on Saturday, he said that some commercial banks had provided less financing than their ceiling under export refinance.
He assured the rice exporters that the central bank would look into the matter and would take steps for this amount to be utilised, mainly for the sectors which are in dire need of financing. He invited Reap members to hold a special meeting with him next week to discuss the issues regarding export refinance, banks financing, and others in detail.
He asked the rice exporters to pay attention on quality and value-addition of the commodity. The rice exporters should establish their brands in the international markets, he remarked. He emphasised on better warehousing facilities and good packaging of the commodity to minimise damage ratio and to earn more foreign exchange.
He said that the SBP had issued the United Nations guidelines to commercial banks regarding trade and banking with Iran. "The commercial banks can provide banking services to Pakistans exporters for their trade with Iran in the light of UN guidelines," he added.
He said that the SBP was ready to help in establishing a branch of any Iranian bank in the country. Earlier, Reap Chairman Abdul Rahim Janoo briefed the SBP Governor about the association and the rice trade.
He said that private sector had played a historic role in promoting the countrys rice exports since its privatisation in 1989. "We had achieved $2.2 billion rice export target last fiscal year from previous only $300 million, before its privatisation", he said, and added that Reap had set a target $2.4 billion for the current fiscal year.
He said that rice trade activities were going on smoothly by the private sector. However, some hurdles were created by the intervention of government institutions, like TCP and Passco, in rice trade. He said that the countrys rice exports would hit $4 billion mark under Reaps Vision 2010. However, he said, the government should provide level playing field to the private sector.
He said that Reap members had explored many markets in the world for Pakistans rice with their own efforts. They had established their own brands in the international markets and had made rice the second biggest foreign exchange earning commodity for the country.
He pointed out that Reap has planned to send its delegations to many countries to explore and establish new markets for Pakistans rice. The first delegation would be sent to Saudi Arabia in the last week of the current month, he added. He said that Reap has planned to set up a most modern rice laboratory in the country.
Reap vice chairman Haroon Rashid said that rice exporters to Iran were facing many difficulties as no Pakistani bank has presence in that country. He requested the SBP Governor to consider opening of at least one branch of any Pakistani bank in Iran. Some leading rice exporters also spoke on this occasion to discuss various issues and gave many suggestions.