export refinance
TRANSCRIPT
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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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