October 23, 2001	Tuesday	Shaba'an 5, 1422

KARACHI, Oct 22: The State Bank of Pakistan (SBP) has agreed to allow more time to rice exporters for remitting export proceeds, owing to delays in clearance of consignments by the US customs.

However, the deadline would be extended by the SBP on the recommendations of the Rice Exporters Association of Pakistan (REAP).

This was decided by the State Bank governor in a meeting on Monday, with a REAP delegation led by its chairman Abdul Rahim Janoo.

The REAP chief informed Dawn that, in cases recommended by the association, the period for remitting export proceeds would be extended up to 240 days from the normal period of 180 days.

This decision, he said, had been taken in view of long delays in clearance of consignments from Pakistan on health reasons.

Janoo said that many REAP members have complained that their US buyers have informed them about delays in clearance of goods by the authorities.

Though the US authorities are not coming out with clear reasons for long delays but importers say these measures may have been taken in the wake of detection of anthrax cases in the US, Janoo maintained.

The REAP chief further said that the SBP governor, however, did not accept their demand of fixing exchange rate, as the US dollar and the rupee parity had been fluctuating rapidly, which did not allow exporters to quote their rates.

Similarly, he said the SBP governor did not agree to reduce withholding tax on rice from 1.25 to 0.50 per cent. However, the SPB chief hinted at lowering of export finance rate by the end of this year from the present 12 per cent to 10 per cent.