Export Finance Scheme extended till August 31

KARACHI: The State Bank of Pakistan (SBP) has extended export finance scheme till August 31 to help continue supply of funds to exporters under the scheme, the bank said in a circular issued on Tuesday.

“The export refinance limits sanctioned in favour of banks for the year 2016/17 are due to expire on June 30, 2017.” “Under the present system, exporters are required to submit EE-1 statement for the year 2016/17 duly verified by the Foreign Exchange Operations Department latest by August 31, 2017,” it added.

The State Bank also advised banks to inform exporters that they should ensure timely submission of EE-1/EF-1 statements in their own interest, avoiding delaying submission of these statements in expectation of extension in deadline. The facility was self-regulating and exporters should be able to work out correctly their export earnings during FY17.

The banks were also advised to estimate the quantum of their entitlement of limit during the current fiscal year and accordingly adjust their existing borrowings on or before June 30, 2017.

This move is aimed at avoiding utilisation of excess facilities under the scheme during the period of rollover, which would be subject to non-refundable fine. Meanwhile, the SBP also notified the existing Islamic Refinance Scheme and long-term financing facility limits to continue till fresh limits for FY17.

The SBP asked the banks to determine limits under the Export Finance Scheme, Islamic Export Refinance Scheme and long-term financing facility for the next fiscal year and submit them to it up to June 30, 2017.