The Head Offices/Principal Offices of
Authorized Dealers in Foreign Exchange..

Dear Sirs,

Foreign Currency Export Finance (FCEF) Facility – Modifications for Enhanced Access of Credit lines to banks

Please refer to the instructions issued vide F. E. Circular No.04 dated 28th March 2001 on the above subject.

In view of the recent changes in the market environment and the low utilization of the FCEF (“the Facility”) the Asian Development Bank and the State Bank have revisited the Facility and have agreed to modify its provisions to enhance utilization by the banks and exporters.

The SBP, Banking Policy Department (Apex Unit) will henceforth allocate funds under the Facility in the form of credit lines to eligible banks. The funds will be allocated on the banks’ request supported by documents and expected financing of exports to eligible exporters.

Banks wishing to avail credit lines under the Facility are advised to specify their actual requirement for the current quarter and projections for the next quarter in their request. The credit lines will be given in accordance with the criteria agreed between SBP and the ADB as specified in the attached circular.

The modifications are enclosed herewith for the information of all Authorized Dealers in foreign exchange. This Circular supersedes FE Circular No. 04 dated 28th March 2001.

Please bring the above change to the notice of your constituents.