Circulars/Notifications / Infrastructure, Housing & SME Finance Department  

 IH&SMEFD Circular Letter No. 4 of 2019
June 24, 2019

The Presidents/ CEOs,
All Banks/DFIs

Dear Sir/Madam,

Export Finance Scheme (EFS) /Islamic Export
Refinance Scheme (IERS) - Extension in Limit

    As you are aware, export refinance limits sanctioned in favour of banks for the year 2018-19 are due to expire on 30-06-2019. Requests of banks for allocation of limits for FY 2019-20 are being examined, which will be communicated to them in due course.

2. Under the present system, exporters are required to submit EE-1 statement for the year 2018-19 duly verified by our Foreign Exchange Operations Department (FEOD), SBP BSC latest by August 31, 2019. In order to ensure that the financing facilities are available to exporters till finalization of their new limits under Part-II of the Scheme, it has been decided that:

a) Limits sanctioned by banks to individual exporters under Part-II of the Scheme for the year 2018-19 shall continue up to August 31, 2019, 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) All exporters should submit EE-1/EF-1 statements duly completed in all aspects to concerned FEOD of SBP BSC Office through their banks well in time in order to get verification of EE-1/EF-1 statements and subsequently submit the same to concerned SBP BSC Office within deadline i.e. August 31, 2019. In this regard, separate instructions will also be issued by FEOD SBP BSC. The Banks are advised to inform exporters that they should ensure timely submission of EE-1/EF-1 statements in their own interest and avoid delaying submission of these statements in expectation of extension in deadline.

c) The facility under Part-II is self regulating and exporters should be able to work out correctly their export earnings during FY 2018-19, estimate the quantum of their entitlement of limit for the year 2019-20 and accordingly adjust their existing borrowings on or before end June 2019 to avoid utilization of excess facilities under the Scheme during the period of roll over which would be subject to non refundable fine.

3. Banks are, therefore, advised to clearly intimate contents of sub Para a, b & c above to their borrowers availing facilities under EFS Part-II for compliance.

Please acknowledge receipt.

Yours faithfully,

(Ghulam Muhammad)


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