In order to ensure that financing facilities are available to exporters till finalization of new limits, the State Bank of Pakistan (SBP) has decided that limits sanctioned by banks to individual exporters under Export Finance Scheme (EFS) Part-II for the year 2017-18 will continue till August 31, 2018.
Export refinance limits sanctioned in favour of banks for the year 2017-18 are due to expire on 30-06-2018. Under the present system, exporters are required to submit EE-1 statement for the year 2017-18 duly verified by our Foreign Exchange Operations Department latest by August 31, 2018.
Banks would therefore not be in a position to work out revised entitlement of limits for each exporter under Part-II of the Export Finance Scheme (EFS) /Islamic Export Refinance Scheme (IERS) for the year 2018-19 in time.
Therefore, 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 that limits sanctioned by banks to individual exporters under Part-II of the Scheme for the year 2017-18 will continue till August 31, 2018, 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 banking Services Corporation (BSC) and submission of the same to the Refinance Units of the concerned office of SBP BSC.
In addition, to get EE-1/EF-1 statements verified and subsequently submit the same to concerned SBP BSC Offices within deadline i.e. Aug 31, 2018, all exporters should submit EE-1/EF-1 statements duly complete in all aspects to concerned SBP BSC Office through their banks well in time.
State Bank has advised the banks 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.
The facility under Part-II is self regulating and exporters should be able to work out correctly their export earnings during FY 2017-18, estimate the quantum of their entitlement of limit for the year 2018-19 and accordingly adjust their existing borrowings on or before June 30, 2018 to avoid utilization of excess facilities under the Scheme during the period of roll over which would be subject to non refundable fine.
The circular said requests from banks for limits under the Export Finance Scheme and Islamic Export Refinance Scheme for the year 2018-19 should be submitted to this department separately up to June 25, 2018 to enable us for finalizing limits for the year 2018-19. Banks should ensure submission of their requests for limits within due time. Further, the existing limits of Banks under EFS/IERS will continue till fresh limits for FY 2018-19 are notified, it added.