Circulars/Notifications - Banking Supervision Department  
 BSD Circular No. 35
28th September, 2001  

All  Banks, 

Dear Sirs,

Export Finance Scheme – Modifications

 

The Export Finance Scheme has been in operations since 1973 and has gone in to major modifications in the years  1977,  1985  and  1998.  However, the procedure thereunder involved excessive documentations, thus attracting criticism from various sectors especially by the exporters who are the main users of the facility. 

2.         It has therefore been decided to revise the instructions in respect of Part-I of the Export Finance Scheme, with a view to simplify the procedure and eliminate excessive documentations presently being submitted by the exporters to their banks, who are required to send them to State Bank for further scrutiny both at the time of grant of the facility and repayment thereof. This results into submission of multiple copies of the documents by the exporters, besides creating delays in grant of refinance facilities by the offices of the State Bank of Pakistan to the banks.  The modified instructions under Part-I of the Scheme have been prepared in a manner that the end users of the Scheme, viz. exporters require minimum paper work and that the commercial banks assume the responsibilities in monitoring and regulating the Scheme more closely.  It is expected that the modified instructions would provide adequate incentives to the exporters to increase the exports.  Banks shall, however, continue to submit the returns / statements as are presently required to be submitted by them under Export Finance Scheme, to field offices of the State Bank as also different departments of the Central Directorate, till such time these returns / statements are modified.  Revised instructions on Part-I of the Scheme are enclosed. 

3.            Keeping in view the Government efforts to boost / encourage the specified industries viz; fisheries and sea food, information technology, processing, canning and preserving of fruits, vegetables and flowers etc., down stream vendor industries of automobile, house hold appliances, light engineering goods, gems and jewelry,  marbles and onyx,  the eligibility of the commodities which fall within the ambit of these industries have also been reviewed, and they have been made eligible for financing under the Scheme. Banks are free to provide financing facilities to the commodities under EFS, with the exception of those included in the Negative  List, a copy of which is also enclosed with the revised procedure. 

4.         The  updated  instructions  on  the  Export  Finance  Scheme  shall  be  effective  from 1st  October,  2001. 

            Please acknowledge  receipt.



Encls ( As above)

Encls (Forms)

Yours faithfully,
(Kazi Abdul Muktadir)
Director
       
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