Govt asked to redo financing schemes for export sector
2
ISLAMABAD: The government needs to redesign all financial schemes to cater the urgent needs of export sector to minimise the impact of Covid-19, agreed all experts during a webinar organized by the Sustainable Development Policy Institute on Tuesday.
State Bank of Pakistan Senior Joint Director Muhammad Arshad Khan informed the participants that financing for exporters has been increased while long-term financing facility (LTFF) is no more limited to just traditional export-oriented sectors but also open to new potential ones.
In view of Covid-19, he said the eligibility conditions for accessing Export Finance Scheme (EFS) and LTFF have also been relaxed.
Likewise, the collateral free support to small IT exporters in Pakistan is also under review.
Mr Azam, while highlighting other measures aimed to facilitate exporters, said that small and medium enterprise borrowers have already been allowed one-year extension in repayment of loans. Besides, SBP along with its field offices, continues to conduct capacity building and awareness sessions for them.
He suggested that all SME finance institutions should offer advisory services for small business and startups whereas banks should open dedicated hand-holding units for SMEs.
Pakistan Textile Exporters Association Secretary General Azizullah Goheer was of the view that commercial banks also need to offer concessional loans to exporters. He said that the SBP’s local and field offices should interact more with local businesses. Likewise, Covid-19 related financing be provided in the quickest possible manner, he concluded.
General Secretary of Punjab chapter of All Pakistan Textile Mills Association, Kamran Arshad, said more facilitation is needed to help exporters who supply to countries worst hit by the impacts of Covid-19. He suggested that SBP can initiate its own insurance mechanisms and earn revenue.
Fareed Vardag, representing Pakistan Banks Association, said small exporters still lack knowledge about foreign trade requirements so export associations should have a help desk to guide with documentation requirements of central and commercial banks.
Published in Dawn, August 26th, 2020
