KARACHI, Jan 7: Saudi Export Programme (SEP) has offered a $3 million facility through Union Bank to help not only Saudi exporters but also Pakistani importers of Saudi non-oil products.

This was stated by Ibrahim M. Al-Mofleh, Director General SEP during a meeting with the FPCCI members at the Federation House. He said if the response to the credit facility was positive, the quantum of the line of credit could be enhanced and it could be offered through other Pakistani banks.

The line of credit offered by the SEP to Pakistan was the first in the region, but it is already available mostly to importers of Saudi goods in Egypt, Jordan, Algeria, Tunisia, Lebanon, Yemen, Turkey, Iran, and Sudan, etc., he said.

According to an FPCCI press release, he said that the salient features of the credit facility include pre-shipment and post-shipment 100 per cent financing (short term up to 360 days, medium term up to three years and long term up to 12 years) of the value of the transaction.

The transaction amount should be minimum 100,000 Saudi riyals equivalent to $26,000. Besides offering the credit facility through the Union Bank, the SEP can also offer it directly to the importers.

Al-Mofleh said that the SEP approved financing has totaled $320 million so far while it issued insurance policies worth $65 million to cover the risk of the Saudi exporters covering 160 importers in 29 countries.

He said that the credit facility is available to Saudi exporters of machinery, plastics, building materials, electrical products, food and beverages, chemicals, automobiles, steel and PVC pipes, etc.

In response to the suggestion of Raja Muhammad Jamil, chairman Ad-Hoc Committee of the FPCCI, the SEP Director General assured that SEP will persuade Saudi Chamber of Commerce and Industry to participate in the international exhibitions in Pakistan to promote export of Saudi non-oil products.