As you are aware that the export refinance limits sanctioned in favour of banks for the year 2002-2003, are due to expire on 30-06-2003. You are also aware that under the present system the exporters are required to submit the EE statement for the year 2002-03 duly verified by our Exchange Policy Department latest by August 31, 2003. Thus the banks shall not be in a position to work out revised entitlement for each exporter to avail facilities under Part-II of the EFS for the year 2003-04. In order to ensure that the financing facilities are available to the exporters under Export Finance Scheme till finalization of a) new limits for the banks and b) new entitlement of the limits for each exporter under Part-II it has been decided: - 

a)      to allow banks to avail refinance from offices of our subsidiary against limits sanctioned in banks’  favour for 2002-03 till finalization of new limits for 2003-04 or end September 2003 which ever is earlier.

b)      allow continuation of limits sanctioned by banks to exporters under Part-II of EFS for 2002-03 upto August 31, 2003, to enable the exporters to continue to avail financing facilities under the Scheme pending preparation of EE statements, their verification by our Exchange Policy Department and submission by exporters/bank to the refinance unit of the concerned office of SBP BSC (Bank) latest by August 31, 2003. 

As the facility under Part-II is self regulating, the exporters shall continue to be required to foresee their export earnings during 2002-03 work out their own estimate as to the quantum of their entitlement for 2003-04 and should accordingly adjust their existing borrowings on or before end June 2003 to avoid utilization of excess facilities under EFS during the period of roll over which would be subject to fine. Each bank shall be under obligation to explain this requirement to its constituent exporters who have been availing Part-II facilities from it.

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