KARACHI, Nov 13: The State Bank of Pakistan (SBP) has made changes in its earlier circulars regarding trade loans (for imports and exports only) under FE-25 scheme.

In a circular here on Wednesday, the SBP has invited the attention of the Authorized Dealers to its previous Circular letters No 05/EPP.16(326) NFCA-2002 and NO. 07/EPP-16(326)NFCA- 2002 dated August 23, 2002 and September 12, 2002 respectively, regarding trade loans (for imports and exports only) under FE-25 scheme.

With a view to further facilitating the exporters, following amendments have been made:

a) Substitution of the Contracts/ LCs may be allowed up to a maximum period of six months from the date of disbursement of the loan. It means that settlement/execution of the last substituted Contract/LC should not extend beyond six months from the date of disbursement of loan. Authorized dealers will have to ensure strict observance of these instructions.

b) In case, an exporter fails to fulfil the obligations under the final Contract/LC or export order is cancelled, he may approach through the Authorized Dealer to State Bank with valid reasons/Documentary evidence, with the request to allow purchase of the outstanding loan amount, for settlement purposes, from the interbank market.

The SBP has asked the authorized dealers to advise all of their branches and other constituents accordingly.—APP