Please
refer to the Instructions issued on the captioned Scheme from
time to time.
2.
It has been decided to amend the existing instructions on
the captioned Scheme particular those relating to the provision
of finance to the exporter and the grant of refinance by SBP
Under the revised modus operandi the banks shall ensure that
the financing facilities under the Export finance facilities
scheme are made available to the other entity generating exports
i.e. to the other entity generating export i.e. indirect Exporters
instead of existing procedure to allow finance to entity one
entity directly exporting the eligible commodities Under the
revised procedure, offers have also been made to ensure that
the small medium and emerging exporters as also indirect exporters
have adequate access to the credit facilities under Export
Finance Scheme, if otherwise eligible. As an important tool
to ensure this, the Government also intends to introduce Pre-shipment
Export Finance Guarantee Scheme to be administered through
a new corporate entity The cover obtained by the Exporters
under the said Scheme particularly the Small and Medium Exporters
would substitute for the collateral requirement of the banks
and thus hedge the financing risk of the commercial banks
against manufacturing non performance and non delivery risk
and non payment by the exporters. Detailed instructions in
this regard shall be issued shortly.
3.
The State Bank of Pakistan is also in the process of announcing
the Foreign Currency import Finance Scheme thereby enabling
the Direct Exporter or Indirect Exporter to have access to
foreign currency financing for the purpose of import of imported'
inputs, in order to execute his export order, I supplies to
the Direct Exporter backed by a Firm Export order credit Export
letter with the Direct Exporter. Detailed instruction in this
regard shall be issued separately. it is also clarified that
the requirement of 30% minimum cash margin shall not be applicable
on LCs established for the items imported against various
Schemes of temporary imports for exports e.g. NDND Scheme
Manufacturers in Bonded Scheme etc. it is further clarified
that the words "loans/credit/aid" appearing in BPRD
Circular No.40 of 21st November, 1995 would include the facilities
availed by the beneficiaries under the proposed FCIF arrangements.
4.
The maximum rate of finance to be charged by the banks from
their borrowers under the Scheme shall remain 8% as at present.
Where refinance is obtained by the banks against finances
already provided under the Scheme, the State Bank shall share
in the overall profit of the banks concerned subject to a
maximum of 6% when annualized. The banks shall invariably
make payment of the provisional profit on quarterly basis
to the concerned Office of the State Bank of Pakistan on or
before 7th of the month after end of the quarter concerned.
5.
Revised instructions on the Export Finance Scheme are enclosed,
which shall become effective from 1st January 1999. A handbook
containing instructions on the EFS is also being issued separately
for the guidance of Commercial Banks and Exporters.
Please
acknowledge receipt.
Encl:
Encl:
|