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)
|