October 24, 2001	Wednesday	Shaba'an 6, 1422

KARACHI, Oct 23: Governor State Bank Dr Ishrat Husain on Tuesday advised the exporters to get their export finance in US dollar, available at a mark-up of 5.5 per cent, instead of seeking rupee financing at 12 per cent.

In a meeting with the delegation of Pakistan Bedwear Exporters’ Association (PBEA) held at the State Bank, the governor said that under the present stable exchange rate, the exporters would get a 6.5-per cent margin, if they did their export financing in greenback.

In the past, Dr Ishrat said, the rupee used to remain under pressure against the US dollar and the parity of both the currencies remained highly volatile.

However, now the situation has changed and the exporters could easily bank upon stable dollar/rupee parity, necessary for getting export finance in dollars.

The PBEA delegation, led by its chairman Shabir Ahmed, appreciated the governor’s suggestion, which could cover up their margins, lost due to weakening dollar and higher export finance mark-up of 12 per cent.

The SBP governor explained that since the expected export proceeds in dollar will be equivalent to the amount of export finance taken by an exporter, therefore, no risk would be involved.

The governor was optimistic that cut in discount rate from 12 to 10 per cent will not only help the economy revive but also improve the use of credit line by the private sector, which was essential for promoting industrial activity and creating job opportunities.

Dr Ishrat informed the delegation that the State Bank has made available funds in foreign exchange for setting up warehousing facilities aboard and would also assist in case a business establishment wants to set up overseas branch office.

In response to a suggestion given by a team member, the SBP chief said that all important circulars and notifications henceforth would be faxed or mailed to trade bodies so that they can also have immediate access to important decisions taken by the central bank.