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: -
a)
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.
b) 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.
c) 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 2007-08.3.
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.
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