August 04, 2007	Saturday	Rajab 19, 1428

KARACHI, Aug 3: State Bank Governor Dr Shamshad Akhtar on Friday assured exporters that the continuation of the new system of disbursement of export refinance would depend on its working during next three months.

The governor announced this to pacify the agitating exporters, who were not ready to accept new arrangement of disbursement of export refinance up to 30 per cent by scheduled banks as laid down in new monetary policy.

A meeting held on Friday between exporters and heads of scheduled banks was chaired by Dr Shamshad Akhtar, who listened to apprehensions from exporters about the new export refinance arrangement.

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Tanveer Shaikh led the private sector team comprising Tariq Sayeed, Shakil Dingrah, Dr Ikhtiar Baig, Asif Tata and Shabir Ahmed.

Sources privy to the meeting told Dawn that there was lot of firework from both the sides and exporters were not ready to accept the new arrangements as they have had a lot of apprehensions about the system.

Sources said that exporters were not happy that scheduled banks should be allowed to handle export refinance despite the fact that the State Bank had assured them that the mark up would be capped at 7.5pc and exporters would get 100pc funds along with the growth margin.

There was a general consensus amongst the exporters that the scheduled banks would give them tough time in getting export refinance. However, the SBP governor suggested that system should be allowed to work for an initial period of three months and thereafter it will be reviewed.

National Bank of Pakistan (NBP) president Ali Raza tried to contain the exporters by labelling some serious allegations against them, a participant to the meeting said. He said that the textile industry was mostly owned by families due to which they are inefficient.

Ali Raza also alleged that the industry did not hire qualified managers such as MBAs and also conceal their financial statements, which are mostly audited by less reputed audit firms.

Responding to these allegations Pakistan Bedwear Exporters Association (PBEA) Chairman Shabir Ahmed informed the NBP’s president that all over the world major concerns belonged to families. He said in US Walmart, Ford Motors, and Hinz all are family owned. Similarly, he said that in India – Tata, Birla, Mittal Steel etc were also family owned whereas in Korea, Samsung, LG, Daweoo are also owned by families.

Upon this Dr Shamshad Akhtar told exporters that if any bank created problems for them or indulge in any malpractice they should immediately report to the State Bank for appropriate action. Shabir Ahmed informed the governor that he wanted to lodge a complaint against NBP for making a fraudulent deal with him. The governor assured him that necessary action would be taken once the case was presented before the State Bank.

Tariq Sayeed of FPCCI strongly criticised the heads of banks for raising personal issues at such a forum and said that appointing auditors depends totally of ones own selection. Asif Tata drew the attention of heads of banks towards the balance sheets being published in leading newspapers by many textile units.