Please
refer to BPRD Circular No.27 of 26th July, 1997-alongwith
other instructions issued on the captioned subject from time
to time.
2.
It has been decided to reduce the maximum rate of finance
to be, charged by the banks/NTBF's from their borrowers Under
Export Finance scheme as also Export sales under the Scheme
for Financing Locally Manufactured Machinery from existing
11% p.a. to 8% p.a. These instructions shall be applicable
on the final1cing facilities provided by commercial banks/NBFI's
both Under "Investment Type" and Trade related"
modes of financing.
3.
Where refinance is obtained by the financial institution against
provided under the above mentioned schemes ,the State Bank
will share in the overa1l profit of the financial institution
concerned, subject to a maximum of 6% as against 9% subject
to observance of usual provisions prescribed in this regard-
Suitable amendments may accordingly, be made in ICD Circular
13 of November 13,1994.
4.
As a sequel to above, reduction in the rate of finance/refinance
scheme and with a view of avoid mis-utilization of the financing
facilities availed, it has been decided to enhance the existi11g
scales of fine (of. BPRD Circular No.23 dated 28th July,1996
applicable on exporters who fail to honour their commitments
under Export Finance Scheme as Under :-
'The
rate of fine on account of non-shipment/short shipment and
delayed shipment Under Part-I of the Scheme shall be paisa
37 per day per Rs 1000 or part thereof
ii)
In case an exporter who has obtained refinance under Part-II
of the Scheme fails to match his borrowing by prescribed export
performance he shall be subjected to a find of Paisa 37 per
day per Rs 1000 or part thereof for the shortfall in the total
daily product of exports undertaken by him. the revised scale
of fines shall be applicable on the facilities availed for
the monitoring year 1998-99 and onward.
5.
Further in order to give boost to poultry industry it has
been decided to provide concessionary export finance for 150
days from export of "Eggs for hatching" and "Day
old chicks". Your are, therefore, advised to please make
following amendment against Harmonized Code No. 01.05 of the
aforesaid list of in-eligible commodities, circulated vide
ICD Circular No. 9 dated 29th October, 1991:-
Commodity |
Harmonized
Code Main Harmonized Code (ITC)
|
Remarks
|
1.
Live Animal |
01.05 |
Excluding "Eggs for hatching" and "Day
old chicks". |
6.
Attention of Banks is also invited to BCD Circular No.16 of'
July 25, 1990, in terms of which concessionary financing facilities
under Export Finance scheme, are already available to Pakistan
Consultancy/and Construction Firms who are awarded Contracts
of Consultancy/and Construction abroad. Banks are therefore
advised to allow Export Finance under Part-I. of the Export
Finance Scheme, to construction and consultancy firms, for
the purpose of acquiring and exporting goods and services
from Pakistan, for their own use in the country awarding the
contract with the prior approval from the Director Banking
Policy & Banking Regulations Department; SBP: , CD:, Karachi.
7.
It is also added that the State Bank is in the process of
reviewing the existing instructions of the Export Finance
Scheme, in term of Which financing facilities under the Scheme,
shall also be made available to Small Medium Enterprises (SMEs)
direct or indirect exporter Detailed lnstructions in this
regard shall be issued separately.
8.
The above instructions shall be applicable from 1st July,
1998
9.
Other instructions on the subject shall remain changed
Please acknowledge receipt
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