KARACHI, Jan 30: The exporters of bleached/unbleached cloth fabric can now avail of export finance facility under part I of the export finance scheme. But they can get the facility against only such bleached/unbleached fabric whose export price is more than $3 per square meter.

The State Bank announced on Wednesday that the decision would take immediate effect. The central bank had discontinued export finance facility for the exporters of bleached/ unbleached fabric from July 1, 2001. Ever since this discontinuation “the SBP has been receiving representations from the exporters” for reinstatement of the facility especially for “those categories having sufficient value addition in terms of export price vis-a-vis average export price of the commodity.” Hence the decision to reinstate the facility.

“As the facility has been reinstated on the basis of...per square meter export price, in case of substitution the exporters shall remain liable to ship bleached/unbleached fabric with a price not less than the per square meter price of the original contract.” That is, the substitution facility shall not be allowed in respect of the bleached/unbleached fabric exported at lower export price.