KARACHI: The State Bank of Pakistan (SBP) has announced to further extend time for settlement of foreign currency loans by six months for exporters and importers amid Covid-19 pandemic.

“Continuing with its commitment to support the industry amid Covid-19 pandemic, the SBP has further facilitated the exporters and importers by allowing extension up to 180 days in settlement of their loans under FE-25 scheme,” announced the central bank on Thursday.

“Banks can now allow extension up to 180 days to exporters in settlement of their FE-25 loans in case they are facing delay in realisation of export proceeds due to Covid-19,” the SBP circular said.

Moreover, banks can also allow settlement of FE-25 loans to exporters through substitute contract during the extended period of 180 days where the original export contract has been cancelled due to Covid-19.

Likewise, the SBP has also allowed the banks to extend the maturity of FE-25 import loans by 180 days.

This facilitation has been provided to exporter and importers for their foreign currency loans maturing up to Sept 30, 2020.

The SBP reiterates its unflinching resolve to continue working with all stakeholders to provide all needed facilitation in these uncertain times in the larger interest of people of Pakistan.

On Wednesday the State Bank facilitated the exporters and export-oriented industry by providing additional amount of Rs190bn. Since mid-March, the banks deferred Rs643bn while Rs171bn loans were restructured.

Published in Dawn, August 21st, 2020