The Presidents/ CEOs,

All Banks

Dear Sirs / Madam,

EXPORT FINANCE SCHEME-EXTENSION OF LIMIT

As you are aware, export refinance limits sanctioned in favour of banks for the year 2006-07 are due to expire on 30-06-2007. Under the present system, exporters are required to submit EE-1 statement for the year 2006-07 duly verified by our Foreign Exchange Operations Department latest by August 31, 2007. Banks would therefore not be in a position to work out revised entitlement of limits for each exporter for availments under Part-II of the Scheme for the year 2007-08. 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: -

1. Limits sanctioned by banks to individual exporters under Part-II of the Scheme for 2006-07 shall continue upto August 31, 2007, 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.
2. The facility under Part-II is self regulating and exporters should be able to evaluate correctly their export earnings during 2006-07, work out their own estimates as to the quantum of their entitlement for the year 2007-08 and should accordingly adjust their existing borrowings on or before end June 2007 to avoid utilization of excess facilities under Scheme during the period of roll over which would be subject to non refundable fine.
3. Requests from banks for each of the of limits under the Export Finance Scheme, Islamic Export Refinance Scheme and LTF-EOP Scheme for the year 2007-08 may be submitted to this department separately upto June 11, 2007 to enable finalization before the commencement of financial year 2007-08.

Other instructions on the subject shall remain unchanged.

Banks are, therefore, advised to clearly intimate contents of sub para a & b above to their borrowers availing facilities under Part-II of the Scheme for compliance.

Please acknowledge receipt.