KARACHI, Feb 14: The State Bank of Pakistan (SBP) has extended the period of refinancing facilities for exporters under Part-I of the Export Finance Scheme (EFS) up to 270 days.

The central bank issued a circular to presidents/CEOs of all banks on Saturday which stated that in case of fresh finances granted by banks to exporters, the facility will be available for 270 days to the exporters however banks will have to adjust the finance within a maximum period of 180 days.

The banks will allow rollover for an additional period of 90 days, provided shipment has been made by the exporters within a period of 180 days after withdrawal of the finance.

The circular further says that in case of export finance already availed of by exporters under the Part-I of the EFS, banks may allow an additional period up to 90 days for repayment of export finance availed of for export of all eligible commodities, except where export proceeds have been realised earlier by the exporters.

For this purpose the exporter/bank desiring rollover of the facility shall be under obligation to submit Annexure-D, as prescribed under the scheme within a maximum period of 180 days of availing of the finance giving therein the particulars of shipment. The concerned SBP BSC Office shall allow rollover of refinance for a period of 90 days against the already submitted loan documents.

Keeping in view the prime objective of promoting exports, it has been decided to increase export performance requirements as follows: The exporters will get finance up to 85 per cent of the value of firm export order/contract/letter of credit and will be required to make shipments equivalent to 117 per cent against refinance availed for 270 days from the export of eligible commodities under Part-I (pre-shipment).Similarly, in case of post shipment, exporters will be eligible to avail 85 per cent refinance against the respective shipment.

In case an exporter prefers to remain in the old system, he can avail export refinance facility for a maximum period of 180 days under existing terms and conditions.

Other instructions on the subject shall remain unchanged, the circular concluded.—APP