KARACHI, May 26: The State Bank is not ready to give waiver to exporters, who failed to repatriate overdue export proceeds as their foreign buyers declared bankruptcy.
Consequently, exporters are in a fix unable to sort out the issue, particularly when the SBP adjudication courts are not ready to listen to logic and give due weight to documentary evidences being furnished to prove the bankruptcies of foreign buyers, said Towel Manufacturers Association chairman Usman Ali.
He said that when a foreign buyer declared bankruptcy how the exporter could repatriate export proceeds.
It is pathetic that such a logical and simple matter is not being understood by the State Bank, he maintained.
Many trade bodies raised this issue with the State Bank and pointed out that the US textile industry had undergone relocation and re-organisation forcing some reputable buyers to become bankrupt He said that the exporters were presently suffering on two accounts, firstly they lost their payments against shipments and secondly, they could not get further refinance until all previous export proceeds are repatriated, Mr Usman added.
Pakistan Bedwear Exporters Association (PBEA) chief patron Shabir Ahmed said the SBP authorities were not ready to listen to logic and keep quoting rules and regulations.
He advised the SBP authorities to take decision on the basis of documentary evidences being furnished by exporters about the bankruptcies of their buyers.
He said that the SBP has bluntly told the bedwear exporters that the settlement of overdue bills will be made only in terms of relevant regulations and full export value of goods exported should be received.
Every exporter, he said, knows rules and regulations with regard to E-form but what can he do if his foreign buyer declares bankruptcy and fails to settle due amount for shipments received.
It is even more astonishing that the SBP is not ready to listen to any solution, which may help to resolve the issue and settle the matter once for all.
The PBEA patron suggested that in case an exporter do not avail the 10 per cent of export proceeds allowed as commission, the same may be used to adjust his bad debts.
It is a workable solution for adjustmentof smaller amounts of bad debts, he added.
He said that the SBP authorities gave formal reply to such issues, which have no precedent and informed the exporters that the Exchange Policy Department has been allowing extension in repatriation of export proceeds on such grounds.