Sunday October 02, 2022

SBP automates refinance claims

By Our Correspondent
August 14, 2022

KARACHI: The State Bank of Pakistan (SBP) has automated verification of refinance claims under the Export Finance Scheme (EFS) to facilitate exporters and banks.

Automated verification would significantly enhance efficiency of refinance operations and improve exporters’ access to liquidity, the central bank said.

With the initiative, refinance claims can now be verified through an online system by banks and can be made available for performance calculation and loan entitlement within minutes.

After a brief parallel run, the automated verification of refinance claims would permanently replace the existing manual verification being performed by Foreign Exchange Operation Department (FEOD) and Development Finance Divisions (DFDs) in SBP-BSC offices, SBP said.

The new automated system allows banks to generate provisional export performance of their exporters during the concluded financial year, review it with the exporter and submit the finalised performance to the system electronically.

The system would verify the finalised performance and calculate loan entitlement, which would be granted by SBP-BSC upon banks’ request, it added.

The automated verification of refinance claims is expected to conserve resources and enhance efficiency by reducing turnaround time and change of hands. It would ensure swift processing of export refinance to exporters and provide them easier access to liquidity, ultimately benefiting export earnings of the country, the central bank stated.