State Bank of Pakistan has extended export refinance limits up to August 31, 2007, which were to expire on June 30. In this regard SBP has issues a circular SME&MFD No 3 to the all banks' presidents and chief executive officers.
Under the present system, exporters are required to submit EE-1 statement for the year 2006-07 duly verified by the Foreign Exchange Operations Department latest by August 31, 2007, circular added.
Banks would therefore not be in a position to work out revised entitlement of limits for each exporter for availments under Part-II of the Scheme for the year 2007-08.
In order to ensure that the financing facilities are available to exporters till finalisation of their new limits under Part-II of Scheme SBP has decided to limits sanctioned by banks to individual exporters under Part-II of the Scheme for 2006-07 shall continue up to August 31. SBP said that main of this step will enable exporters to avail financing facilities under the Scheme pending preparation of EE-1 statements.
Circular said that the facility under Part-II is self- regulating and exporters should be able to evaluate correctly their export earnings during 2006-07, work out their own estimates as to the quantum of their entitlement for the year 2007-08 and should accordingly adjust their existing borrowings on or before the end of June 2007 to avoid utilisation of excess facilities under Scheme during the period of roll over which would be subject to non refundable fine.
SBP has requested banks for each of limits under the Export Finance Scheme, Islamic Export Refinance Scheme and LTF-EOP Scheme for the year 2007-08 may be submitted to this department separately up to June 11 to enable finalisation before the commencement of financial year 2007-08.