Please refer to the instructions issued on the subject from time to time. 

2.         As you are aware the rates under EFS, which were adjusted on quarterly basis are now being adjusted on monthly basis, necessitate at least six adjustments during the currency of the loan period, which has been fixed at 180 days for all eligible commodities except carpets for which the facility is available for 270 days. 

3.         Under the Export Finance Scheme the exporters are required to perform by affecting shipments to the extent of 100% of the amount availed by them under Part-I of the scheme and twice the amount of average borrowings under Part-II. The exporters who availed the facility under Part-II can avail the benefits of reduced rates by adjusting their outstanding loans and reavailing the same as a new loan, as they have to fulfill the performance requirements by the close of the monitoring year. However the exporters under Part-I cannot avail benefit of reduced mark up by liquidating their outstanding loans, as on liquidation of their loans they are obliged to submit shipping documents, failure to which attracts fine for non shipment.  In order to give benefit of the reduction in EFS rates to the exporters under both Parts of the scheme, banks are advised to reprice their outstanding loans granted under Export Finance Scheme on monthly basis effective from  1st December,  2001, keeping in view the revised reduced rate under EFS notified by the State Bank on monthly basis.  The Offices of SBP Banking Services Corporation (Bank) would also simultaneously revise the rate of return on such refinance loans granted by them to banks falling under their jurisdictions for which the financing banks shall submit to them duly filled in information on the annexed format. 

4.         The banks shall, however continue to charge mark-up at the normal rate of finance in case outstanding finance under EFS is not repaid by the exporter on the respective due dates. 

5.         Other relevant instructions on the subject shall, however remain unchanged.

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