Frequently Asked Questions

Question 1: How can I avail financing facilities under Export Finance Scheme of SBP? 
Any exporter can avail the Export Finance Facility through any of commercial bank, after fulfilling collateral requirements of the bank. The decision to lend shall be taken by the bank under its approved credit policy. 

Question 2: From where I can find detailed instructions of EFS of SBP ? 
Instructions on EFS are available on State Bank?s web site viz. www.sbp.org.pk. 

Question 3: What is meant by Part I & Part-II under the Export Finance Scheme? 

Part-I.  Financing under Part I of the Scheme is a transaction-based facility. The finance is granted by the bank to the exporter on the basis of a Firm Export Order / Export Letter of Credit, for a maximum period of 180 days. The financing facility can be availed at pre-shipment stage for procuring inputs and manufacturing the goods to be exported. The financing at Post Shipment stage is also granted against goods already shipped to the importer abroad up-to realization of export proceeds or 180 days, whichever is earlier. 

Part-II:  Under Part-II of the Scheme, a revolving finance limit is sanctioned to the exporter equivalent to 50% of  his  export performance  during the previous year on July -June basis and he has to make shipments and realize export proceeds from the exports of eligible goods, at least equal to the twice of the amount of finance availed. 

Question 4:- What is meant by performance by exporters? 

Part-I: Performance under Part-I means shipment of the eligible goods / commodities equivalent to the value of the amount of finance availed under the Scheme and realization of the export proceeds. 

Part-II: Under Part-II, performance means realization of the export proceeds, made during monitoring year (July-June basis) that should be equivalent to two times of the amount of financing facilities availed under this part of the Scheme.  For the purpose, the realization includes the following: - 

i)        Shipment date against Export Letter of Credit, with clean documents provided that the same are not discounted,

ii)        Negotiation / discounting dates of documents sent under usance Letter of Credit,

iii)        Realization of the export proceeds against documents sent under collection,

iv)        Shipment date against advance payments already received by the exporters. 

Question 5: What is the EE-1 statement? 

EE-1 Statement is a statement containing details of exports proceeds realized from the exports of eligible goods by the exporter during last year. Realization of proceeds under Part I  is also admissible to be included for entitlement of limit under Part II. 

Question 6: What is the purpose of EF-1 statement?           

         It is a statement on which performance of the exporter, under part-II, is shown at the end of each year.  No E form can be included against which performance has already been utilized under Part I. 

Question 7: Who are the Direct and Indirect Exporters? 

Direct Exporters are those who are exporting the goods & services directly. The indirect exporters are those who, although, are not directly exporting but are contributing in the exports by supplying the inputs / finished goods to the direct exporter. 

Question 8: Can an Exporter avail both Part-I and Part-II facility against one export order / letter of credit?

Yes, provided that every shipment is reported through a different E Form.

Question 9: Can an Exporter shift EFS facility availed from one bank to other bank?

         Yes, Export Refinance Facility availed from one bank can be shifted to other bank, if both banks are availing the facilities from same office of the State Bank Pakistan   BSC (Bank) provided that the bank from where the facilities are being shifted gives NOC; Shifting means drawing of limit against Part-II entitlement through other banks. The existing outstanding finance /refinance cannot be shifted.  

Question 10:  What is substitution? 

This is a facility wherein the Exporters can avail Export Finance Facilities against Firm Export Order /Export Letter of Credit ?A? and submit shipping documents in respect of Firm Export Order /Export Letter of Credit ?B?. However both the commodities have to be eligible commodities and such substitution needs to be exercised within the validity of the refinance facility. This facility is available under Part-I only. 

Question 11:  Can an exporter borrow in foreign currency from a bank in Pakistan?

          Yes, Exporter can borrow, in US$ in Pakistan under the Foreign Currency Export Finance Scheme 

Question 12: Can Exporter avail both FCEF and EFS for one consignment? 

          The exporter can draw US$ for import and /or purchase of goods as imported / domestic inputs eligible under FCEF Scheme. The amount of financing for value addition in respect of the goods to be exported can be borrowed under Part I of EFS from the same bank, if the final output / good being exported are eligible under EFS. 

Question 13: Do commodities ineligible for Export Finance are also ineligible for Foreign Currency Export Finance facility?           

Both FCEF & EFS are two distinct Schemes and have their own negative lists, which are available at www.sbp.org.pk