The Presidents/ CEOs,
All Banks

Dear Sirs / Madam,

EXPORT FINANCE SCHEME-EXTENSION OF LIMIT

As you are aware that the export refinance limits sanctioned in favour of banks for the year 2005-06, are due to expire on 30-06-2006. Under the present system, the exporters are required to submit EE-1 statement for the year 2005-06 duly verified by our Foreign Exchange Operations Department latest by August 31, 2006. Thus the banks shall not be in a position to work out revised entitlement of limit for each exporter to avail facilities under Part-II of the Scheme for the year 2006-07. In order to ensure that the financing facilities are available to the exporters till finalization of their new limits under Part-II of Scheme, it has been decided as under: -

a) Limits sanctioned by banks to individual exporters under Part-II of Scheme for 2005-06 shall continue upto August 31, 2006, to enable the exporters to avail financing facilities under the Scheme pending preparation of EE-1 statements, their verification by the Foreign Exchange Operations Department, SBP, BSC, (Bank) and submission of the same to the Refinance Units of the concerned office of SBP BSC (Bank).

b) The facility under Part-II is self regulating, the exporters shall continue to foresee their export earnings during 2005-06, work out their own estimate as to the quantum of their entitlement for the 2006-07 and should accordingly adjust their existing borrowings on or before end June 2006 to avoid utilization of excess facilities under Scheme during the period of roll over which would be subject to fine.

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.