Please refer to SME &MFD Circular No.03 dated 31st July, 2007 read with SMEFD Circular No. 01 dated August 20, 2008 on the captioned subject.

2. In order to facilitate banks to provide financing to the exporters, it has been decided to amend the Export Finance Scheme (EFS) as under:

i) State Bank will henceforth provide 100% refinancing to banks against export finance provided by them to exporters under Part-I of EFS subject to fulfillment of the requirements of the Scheme. However, banks will continue to provide 30% of finance under Part-II from their own sources.

ii) Export finance already provided by banks under Part-I of EFS from own sources at the ratio of 30 percent and outstanding as on 31st October, 2008 shall be refinanced by the State Bank, for the remaining period of individual loan. For this purpose, the banks will have to approach the respective field offices of the SBP BSC.

iii) The limit of each bank under EFS for the FY 2008-09 will be revised on quarterly basis and conveyed to banks individually.

3. Banks will obtain an under-taking from the exporters availing financing under EFS to utilize such financing only for increasing exports. Any misuse of facilities availed under EFS on the part of exporters or banks will attract punitive action against delinquents under the Scheme.

4. All other instructions on the subject shall remain unchanged.

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