The Head Offices/Principals Offices of
Authorized Dealers in Foreign Exchange.
Dear
Sirs,
FOREIGN
CURRENCY EXPORT FINANCE (FCEF)
TERMINATION OF THE FACILITY.
Please refer to the instructions issued vide F.E. Circular
No. 04 dated the 28th March 2001 and modifications therein
vide F.E. Circular No. 07 dated the 17th April 2003 on the
captioned subject.
2.
Banks are well aware that the Government of Pakistan had
negotiated a loan in US Dollar with the Asian Development
Bank to meet the financing requirements of the exporters
in foreign currency for import of inputs required by the
exporters for manufacturing the goods for export purpose.
It has, however, been observed that the Scheme did not attract
exporters as its utilization has remained at a very nominal
level because of a number of reasons. Efforts by the State
Bank in enhancing the utilization of the Scheme have also
not been successful. The lack of interest from the exporters
and under utilization of the Scheme by the exporters has
reduced its economic usefulness. Accordingly, the Federal
Government has decided to repay the loan availed from ADB
for the purpose ahead of its scheduled repayment.
3.
All the Authorized Dealers are, therefore, informed that
the afore-said FCEF stands terminated with effect from the
date of issuance of this Circular. They are further advised
not to entertain any fresh request from exporters for financing
under FCEF
4.
Please bring the above instructions to the notice of your
constituents
Please
acknowledge receipt.