The exporters are not getting the benefit of 1.5 percent reduction in Export Refinance Rate announced by SBP on September 10, 2012. According to Fawad Ijaz Khan Patron-in-Chief of Pakistan Leather Garments Manufacturers & Exporters Association (PLGMEA), SBP is not allowing this reduction of Export Refinance Mark-up to exporters on their outstanding refinance amounts against Part-I & Part-II and Islamic refinance loans from September 10, onwards and this rate reduction as per SBP is only applicable on new loan applications.
Previously any increase or decrease in Export Refinance Rate was applicable from the date it was announced, he mentioned. It is clearly mentioned in SBP BPD Circular No 2 dated March 16, 2002 that any reduction announced by SBP on Export Refinance Mark-up rates will be implemented from the date of announcement and it was implemented by SBP on the last reduction.
Fawad clarified that the exporters rollover their Part-II Export Refinance Loans by the deadline of 31st August of each year. This deadline was later extended to September 15, by SBP. Most of the Exporters already rolled over their Part - II Refinance Export Loans before the announcement of reduction in Export Refinance Mark-up Rates. Now they will again roll over their Export Refinance Part - II Loans in February/March 2013 and hence will be eligible to get the benefit of reduction six months after its announcement. The Export Refinance Loans (Part I & II) are granted for a maximum Period of Six months.
He has urged the Governor State Bank of Pakistan Yaseen Anwar to look into this anomaly and allow the benefit of reduction on Export Refinance Loans (Part I & II) and loans under Islamic Refinance Scheme on all outstanding amounts as on September 10, 2012 when the reduction in mark-up rate this was announced by SBP. Fawad stated that if it is not fair on the part of SBP to increase the Export Refinance Mark-up Rates when rates are increased from the date of its announcement and not giving the benefit of reduction when rates are revised downwards.-PR