Export Refinance

8/2/2019 Export Refinance

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Naushad JamilID No. 5217

EXPORTS FINANCE SCHEM BY SBP


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Types of industries under

Exports Finance

Agriculture

Automobile Industry

Cotton &Textile Industry

Electronics

MachineryFood Items

Sports Goods

Miscellaneous


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Export Finance Scheme (EFS):

Part-I

Transaction based facility

Coverage to the extent of100% of export

order/LC/contract.Facility is available at both Pre &Post shipment stages to DE

Facility available to IE at Pre-shipment stage only

Facility available to

- Direct Exporters : 180 days

- Indirect Exporters: 120 days

Performance required against

every transaction.

Part-II

Performance based facility

Facility is available to DirectExporters only but not to Indirect

ExportersExporters are allowed a revolvingcash credit limit equivalent to 50%of their total value of goodsexported in the previous year.

The exporter can avail facility forthe maximum period of 180 days.


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Mark-up Rate under EFS

Mark up rate under EFS is fixed on monthly basis.

Current Mark up rate is 7.5% plus Spread of banks

,which is 1%


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Mark up Rates under LTF-EOP:

Tenure (inclusiveof grace period)

Linked with *Rates forPFIs

*Rates forBorrowers

Up to 2 Years Weighted Avg.

Yields on 12month T-bills

4% p.a. 6% p.a.

Over 2 but up to

3 Years

on 3 Years PIBs 4% p.a. 6% p.a.

Over 3 and up to

7-1/2 Yearson 5 Years PIBs 5% p.a. 7% p.a.


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Banks/DFIs Eligible to Grant Finances:All banks/DFIs are eligible to grant finance under the Schemesubject to their approval as Participating Financial Institutions(PFIs) by SBP.

Repayment of Finance/Refinance: Loan is repayable in half-yearly or quarterly installments.

Scheme provides multiple options of repayments:

Upto 2 years (without any graces period)

Over 2-3 years (including grace period of 6 months) Over 3-5 years (including a grace period of 1 year)

Over 5-7 years (including a grace period of 1 years)


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Trading:

Trade Development Authority ofPakistan

Scheme for Freight Subsidy on Exports

The scheme will be called Scheme for Freight

Subsidy on Exports, hereinafter referred to asthe scheme.

Admissibility of Freight Subsidy: 25% freight subsidy on exports of Eligible Products

Freight subsidy will be available on C&F/CIFshipments

No individual exporter / firm / company will be entitledto freight subsidy exceeding Rs. 5 million in a year


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Export Finance Scheme:

The Export Finance Scheme of the State Bank ofPakistan has been in operation since 1973 and hasbeen a major source ofbanks credit to the exporters

Incentives:

Lending banks/DFIs.Clean Exposure:

No Banks / DFIs shall provide unsecured / clean

financing facility, in any form, of a sum exceeding Rs 500,000/- (Rupees

five hundred thousand only)


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SUGGESTIONS to IMPROVE SCHEME OF

EXPORT REFINANCE:

Promotion of labor-intensive industrie

Diversification of exports

Restoration of sick industries:Reduction in export duties:

Improve access to credit:

Improvement of physical infrastructure:Joint Venture with China:


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Documents

Export Refinance