Circulars/Notifications - Banking Policy Department  
 BPD Circular No.26
July 11, 2003  


The Presidents/ CEOs,

All Banks,

Dear Sirs,

Refinance Facility under Export Finance Scheme for Consultancy  Services- Provision of Part-II facilities

Please refer to BSD Circular No.41 dated 30th October 2001 containing therein procedure for provisions of financing facility against Consultancy Services for specified sectors, under Part I of the captioned Scheme. 

2.         It has been decided that the exporters of the consultancy services in respect of the sectors already specified in our Circular referred to above, shall henceforth be eligible to avail facilities under Part-II of the Export Finance Scheme subject to following conditions: - 

i)        The exporters of services and / or consultancies shall be entitled to have financing facility under Part II of the Scheme as from the financial year 2003-04 on the basis of the export proceeds realized by them from exports of consultancy services for the specified sector. Thus, entitlement of part-II limit for an exporter involved in consultancy services, shall be fixed on the basis of the export proceeds realized by it against services provided in the same sector during the preceding year. The amount of limit shall however be fixed at 50% of the proceeds realized during the preceding year, for which exporter would fill in the Form EE (Services Sector) as per specimen attached which shall be verified (in triplicate) by Verification Unit of the concerned Exchange Policy Department of the SBP BSC (Bank) in line with instructions / procedure specified in the Export Finance Scheme. 

ii)       As per instructions contained in paras 2 & 5 of our circular referred to above, the exporter would be required to include only those export proceeds in form EE (Services Sector) which have been reported by them on monthly basis. After verification of the entries on Form EE, the bank concerned shall retain Original copy of Form EE, fix the limit in favour of the exporter and shall be eligible to provide finance to the exporter. The financing bank shall be entitled to avail refinance on submission of following documents to the Refinance Zone of the concerned office of SBP BSC (Bank) :- 

a) Undertaking as per format on Annexure – D (For Service)

b) D.P. Note as per format in vogue.

c) Form EE (Services Sector) one verified copy marked as “duplicate”. 

3.         The exporter availing the facility under Part II of the Scheme shall be required to repatriate proceeds from the export of services and / or consultancies from the same sector equal to two times of the finance availed and shall be under obligation to submit performance report on Form EF (Services Sector) as per specimen attached by including the proceeds realized and earlier reported on monthly basis to their banker /SBP BSC (Bank) in terms of Para 2  & 5 of BSD Circular No.41 dated 30th October, 2001. The entries in respect of export proceeds which have been utilized for reporting performance under Part I of the Scheme shall not be included / reported in EF (Service Sectors) to avoid duplicate financing.  The exporter / bank shall be required to prepare and submit the said form in triplicate to the concerned Exchange Policy Department, SBP BSC (Bank) for verification of the entries reported therein latest by 31 August following the monitoring year (July-June basis) to which it relates. 

4.         The failure of the exporters to meet performance requirements under the Scheme shall continue to be subjected to fine in accordance with the provisions already specified in the cases of delinquency under Part-II of the Export Finance Scheme.  Likewise, other instructions concerning Part-II of the Export Finance Scheme shall also be applicable to govern the grant of facilities under Part-II to the exporters of the Services and Consultancy. 

5.         Other terms and conditions of the Scheme shall apply as applicable. 

Please acknowledge receipt.

Annexures

 

 

Yours faithfully,
(Muhammad Kamran Shehzad)
Director
       
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