The Presidents/ CEOs,

All Banks.

Dear Sirs/ Madam,

RELAXATIONS TO EXPORTERS UNDER

THE EXPORT FINANCE SCHEME

State Bank of Pakistan has received representations from chambers / exporters that heavy load shedding has adversely affected their production and as a result some of the exporters could not ship export consignments in time or realize export proceeds within FY 2007 - 08.

2. In order to address the problems faced by the exporters it has been decided to provide the following relief in respect of refinance availed by exporters under both Parts of Export Finance Scheme for the FY 2007- 08:-
   1. The exporter, who availed pre-shipment finance during 2007-08 and could not ship the goods within a maximum period of 180 days, a grace period of 15 days, has been allowed. In other words there shall be no fine for delayed shipment if qualified shipment(s) is /are made within 195 days from the availment of loan.
   2. An additional period of one month has been allowed for the exporters having shortfall in required performance under Part-II for the monitoring year 2007-08. Accordingly, they may include entries showing realization of export proceeds during July, 2008 in their EF-1 statement for the year 2007-08.
   3. The exporter having met the performance requirements of the Scheme shall submit EF-1 statement for the purpose of verification to FEOD during July-August, 2008 as usual.
3. The above extension does not affect existing period of loan and all finances/refinances shall continue to be adjusted at the expiry of 180 days under both Parts of the Scheme, as per normal procedure.
4. Other instructions on the subject shall remain unchanged.
5. Please acknowledge receipt.