The Head Offices/Principals Offices of
Authorized Dealers in Foreign Exchange.

Dear Sirs,

FOREIGN CURRENCY EXPORT FINANCE (FCEF)
TERMINATION OF THE FACILITY.

Please refer to the instructions issued vide F.E. Circular No. 04 dated the 28th March 2001 and modifications therein vide F.E. Circular No. 07 dated the 17th April 2003 on the captioned subject.

2. Banks are well aware that the Government of Pakistan had negotiated a loan in US Dollar with the Asian Development Bank to meet the financing requirements of the exporters in foreign currency for import of inputs required by the exporters for manufacturing the goods for export purpose. It has, however, been observed that the Scheme did not attract exporters as its utilization has remained at a very nominal level because of a number of reasons. Efforts by the State Bank in enhancing the utilization of the Scheme have also not been successful. The lack of interest from the exporters and under utilization of the Scheme by the exporters has reduced its economic usefulness. Accordingly, the Federal Government has decided to repay the loan availed from ADB for the purpose ahead of its scheduled repayment.

3. All the Authorized Dealers are, therefore, informed that the afore-said FCEF stands terminated with effect from the date of issuance of this Circular. They are further advised not to entertain any fresh request from exporters for financing under FCEF

4. Please bring the above instructions to the notice of your constituents

Please acknowledge receipt.