KARACHI: State Bank of Pakistan (SBP) on Friday announced relief for exporters under the export finance scheme and long-term financing facility owing to weakening economy amid global spread of coronavirus pandemic, ARY NEWS reported.
According to a circular issued from the state bank, a six months extension in shipment period has been allowed for those Part-I loans, in which shipment is falling due from January 2020 till June 30, 2020.
However, in cases where delayed shipment fine has already been charged against shipment falling due from January 01, 2020, the same shall be refunded.
The SBP also announced relaxation for exporters coming under export finance scheme (EFS) or Islamic Export Refiance Scheme (IERS) falling underPart-II owing to coronavirus outbreak.
It said that currently the exporters availing EFS under Part-II are required to show at least 2 times matching export performance against financing availed during fiscal year 2019-20 on daily average product basis.
This has been reduced to 1.5 times. Likewise, export performance requirement for FY 2020-21 will also be 1.5 times.
Further, an additional period of six months has been allowed to exporters for meeting required export performance against financing of EFS or IERS-II for monitoring period of FY 2019-20.
Accordingly, eligible entries showing shipments and export proceeds realization up to December 31, 2020 are allowed to be included in the export performance of FY 2019-2020. This export performance of extended period will also be considered for entitlement of limit for FY 2020-21.
Exporters will have to submit EF-1 and EE-1 statements showing exports of FY 2019-2020 through their banks to respective SBP BSC office latest by January 31, 2021 duly verified by the concerned Foreign Exchange Operation Department/Division (FEOD).
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Further announcing relief under long term financing facility (LTFF) and Islamic LTFF, it said that exports requirement for availing financing facility during the period from January 01, 2020 to September 30, 2020 has been reduced from US$5 million or 50% exports of total sales to US$ 4 million or 40% exports of total sales.
One year additional period for export performance requirement under projected exports has been allowed for each category (i.e. 1st two years, 3rd year and 4th year requirement) falling in calendar year 2020.
It is pertinent to mention here that over 9000 people have died globally from coronavirus forcing shut down of major business activities worldwide.
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