KARACHI, Aug 19: Exporters would get a hefty amount of Rs358 billion at the rate of 7.5pc under the export finance scheme (EFS) during the fiscal year 2009.

“Funds amounting to Rs358 billion will be available to exporters for export of products eligible under the EFS during fiscal year 2009,” said a press release issued by the State Bank of Pakistan on Tuesday.

In order to ensure availability of adequate financing to exporters under the EFS and to assist them in achieving the exports target, the State Bank would allow limits of Rs125 billion to banks under the scheme for the current year which is 25pc higher than the amount outstanding as on June 30.

As loans under the scheme are allowed for 180 days, around Rs250bn would be provided during the year as refinance from the State Bank at the rate of 7.5pc.

In addition to this, banks would also provide financing facilities to exporters under the scheme from their own sources, to the extent of 30pc , which comes to Rs108 billion, at the same rate of 7.5pc .

Commercial banks have been brought on board further on this sharing mechanism.

In order to ensure timely availability of financing to exporters, the State Bank has also advised banks that in future, financing requests from exporters under EFS should not be turned down, which, otherwise, are meeting the requirements of EFS and lending criteria of the respective bank.

“State Bank would regularly monitor the behaviour of banks in optimal utilisation of limits and if a bank is unable to fully utilise its allocated limit, its unutilised limit would be allocated to other banks,” said the release.

State Bank and commercial banks provided export finance to exporters during fiscal year 2008 at 7.5pc which is substantially lower than the ongoing six-month Kibor (at present around 13.5pc ).

The SBP has also provided refinance amounting to Rs6 billion under its long-term financing for export-oriented projects scheme to exporters during the year 2008, at a fixed mark-up of 7pc for a period of two to 7-1/2 years.

During the period from January to June 2008, the SBP and banks and DFIs have also provided an amount of Rs1.134 billion under the long-term financing facility to exporters for a period of up to 10 years at a concessional mark-up rate.

All the above measures are aimed at ensuring adequate supply of financing to exporters at concessional rates to enable them to compete in international markets to boost county’s exports, said the SBP release.