Exporters failed to bring back $316 million export proceeds in initials months of current fiscal year and the outstanding exports dues have mounted to $927 million. Sources in banking sector told Business Recorder that outstanding export bills amount is gradually increasing, as several exporters have delayed, or have not brought back their export proceeds--the amount earned with export of goods.
Although, following the directives of the State Bank, the banks are making efforts for the recovery of overdue exports proceeds, they, however, seem to be unable to get back full amount of pending export proceeds, for which stipulated period of 180 days has expired and still the proceeds have not been received.
The stock of aggregate outstanding export bills increased by $316 million during July-November 2010 for fiscal year 2010-11 against $194 million of the same period of last fiscal year, depicting an increase of 60 percent (Year on Year) just in five months. The increase in current fiscal year is attributed to better performance of exports during the period under review.
At present, $927 million export proceeds are overdue on the exporters including $316 million of the current fiscal year.
"Some exporters may have genuine problems due to global economic recession and at present they may not be in a position to take back the outstanding export amount", sources said. However, some exporters are making investment abroad due to poor law and order situation and slow economic activities, besides unavailability of industrial infrastructure, they added.
They said that it is the primary responsibility of the exporters to bring back the export proceeds, but the concerned bank is also responsible to make sure 100 percent return of export proceeds.
In order to ensure 100 percent reimbursement of export proceeds the State Bank has enhanced fine from Rs 5,000 to Rs 20,000 in case of non-submission of Export Proceeds Realisation Certificates (EPRC).
Sources said it has also been observed that in a good number of cases banks/exporters are not following timeframe prescribed for submission of EPRC to respective SBP BSC Offices. Therefore, in order to make the monitoring of the Scheme more effective the State Bank had decided to increase the fine. The timeframe required for submission of EPRC is 210 (270 days for export of carpet) days from the date of shipment or within 30 days from the date of realisation of export proceeds.