The Presidents / CEOs,
All Banks
Dear Sir /Madam,
Export Finance Scheme (EFS) /Islamic Export
Refinance Scheme (IERS) – Extension in Limit
As you are aware, export refinance limits sanctioned in favour of banks for the year 2014-15 are due to expire on 30-06-2015. Requests of banks for allocation of limits for FY 2015-16 are being examined on the basis of prescribed criteria which will be communicated to them in due course.
2. Under the present system, exporters are required to submit EE-1 statement for the year 2014-15 duly verified by our Foreign Exchange Operations Department latest by August 31, 2015. Banks would therefore not be in a position to work out revised entitlement of limits for each exporter under Part-II of the Scheme for the year 2015-16. In order to ensure that the financing facilities are available to exporters till finalization of their new limits under Part-II of Scheme, it has been decided as under: -
- Limits sanctioned by banks to individual exporters under Part-II of the Scheme for the year 2014-15 shall continue up to August 31, 2015, to enable exporters to avail financing facilities under the Scheme pending preparation of EE-1 statements, their verification by the Foreign Exchange Operations Department, SBP-BSC and submission of the same to the Refinance Units of the concerned office of SBP-BSC.
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All exporters should submit EE-1/EF-1 statements duly complete in all aspects to concerned FEOD of SBP BSC Office through their banks well in time in order to get verification of EE-1/EF-1 statements and subsequently submit the same to concerned SBP BSC Office within deadline i.e. August 31, 2015. The Banks are advised to inform exporters that they should ensure timely submission of EE-1/EF-1 statements in their own interest and avoid delaying submission of these statements in expectation of extension in deadline.
- The facility under Part-II is self regulating and exporters should be able to work out correctly their export earnings during FY 2014-15, estimate the quantum of their entitlement of limit for the year 2015-16 and accordingly adjust their existing borrowings on or before end June 2015 to avoid utilization of excess facilities under the Scheme during the period of roll over which would be subject to non refundable fine.
3. Banks are, therefore, advised to clearly intimate contents of sub Para a, b & c above to their borrowers availing facilities under Part-II of the Scheme for compliance.
Please acknowledge receipt.
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