SBP extends limits of EFS/ IERS

KARACHI - The State Bank of Pakistan (SBP) has said that all financing facilities including Export Finance Scheme (EFS) and Islamic Export Refinance Scheme (IERS) are available to exporters till finalization of their new limits under Part-II of Scheme.
In a circular issued by the SBP here on Saturday, it was said that export refinance limits sanctioned in favour of banks for the year 2008-09 were due to expire on June 30, 2009.
Under the present system, exporters were required to submit EE-1 statement for the year 2008-09 duly verified by our Foreign Exchange Operations Department latest by August 31, 2009. Banks would therefore not be in a position to work out revised entitlement of limits for each exporter for availment under Part-II of the Scheme for the year 2009-10.
According to a circular, limits sanctioned by banks to individual exporters under Part-II of the Scheme for 2008-09 shall continue up to August 31, 2009, to enable exporters to avail financing facilities under the Scheme pending preparation of EE-1 statements, their verification by the Foreign Exchange Operations Department, SBP-BSC and submission of the same to the Refinance Units of the concerned office of SBP-BSC.
The SBP further said the facility under Part-II is self regulating and exporters should be able to evaluate correctly their export earnings during 2008-09, work out their own estimates as to the quantum of their entitlement for the year 2009-10 and should accordingly adjust their existing borrowings on or before end June 2009 to avoid utilization of excess facilities under Scheme during the period of roll over which would be subject to non refundable fine.