KARACHI, June 6: The State Bank on Wednesday said that the export finance scheme, which was due to expire on June 30, 2007, has been extended till August 31. The move is aimed at continuing supply of funds to the exporters under the scheme.

The export refinance limits sanctioned in favour of banks for the year 2006-07 are due to expire on June 30, 2007. Under the present system, exporters are required to submit EE-1 statement for the year 2006-07 latest by August 31, 2007.

Banks would not be in a position to work out revised entitlement of limits for each exporter under Part-II of the scheme for the year 2007-08.

The SBP decided to ensure that the financing facilities are available to the exporters till the finalisation of their new limits under the scheme.

“Limits sanctioned by banks to individual exporters under Part-II of the scheme for 2006-07 will continue up to August 31, 2007, to enable exporters to avail financing facilities during the extended period,” said a circular issued by the SBP.

The facility under Part-II is self-regulating and exporters should be able to evaluate correctly their export earnings during 2006-07, work out their own estimates as to the quantum of their entitlement for the year 2007-08 and should accordingly adjust their existing borrowings on or before June 30, 2007 to avoid utilisation of excess facilities under the scheme.

Requests from banks for each of the of limits under the Export Finance Scheme, Islamic Export Refinance Scheme and LTF-EOP Scheme for the year 2007-08 may be submitted separately up to June 11, 2007 to enable finalisation before the commencement of the financial year 2007-08.