KARACHI, Dec 3: Exporters have sought State Bank’s permission to allow them adjust their export proceeds against raw material import bills to cut bank charges and save time.

By adopting the new system the commercial banks, which charge fee against import and export bills, will have to forego the same and the State Bank would not lose in terms of money, they said.

The suggestion was made by members of the Pakistan Leather Garment Manufacturers and Exporters Association (Plgmea) at their annual general meeting held here on Tuesday.

Exporters were critical of the performance of commercial banks, which unlike the past, are now earning heavily on account of free float of currency. In the past, the banks earned money through lending but now a lot many avenues have opened up for them to earn profits.

“If the State Bank allows us to adjust our export proceeds against our import bills, we would not need any sort of subsidy because this will save us from bank charges,” a leading Plgmea member asserted.

Some Plgmea members suggested that in case the central bank did not accept their genuine demand, exporters should approach the court of law to get relief.

The AGM also elected Fawad Ijaz Khan as new chairman for the term 2008-09.

Speaking on the occasion he asked the members to submit their overdue export proceeds cases with the association to be taken up with the State Bank.

He explained under new rules the overdue export proceeds cases will not get export refinance and SBP will also impose penalty on them.

Mr Khan also asked the members to submit their time-barred sales tax cases so that they could be taken up with the department.

He also invited suggestions from the members to hold a joint leather show with Pakistan Tanners Association in 2009.