20000227

15-day grace

period allowed

to exporters

RECORDER REPORT

KARACHI: The Export Cell of the State Bank of Pakistan has agreed to allow 15-day grace period before imposing penalty on the exporters not showing the required export performance under part 11, re-finance facility.

The agreement came at the meeting of the cell held at the State Bank on Saturday, which was chaired by Mansoor-ur-Rahman, Executive Director, SBP, and attended by representatives of exporters associations and Export Promotion Bureau.

The exporters had pleaded that sometime the exporters suffered from a shortfall in export proceeds in a bank whereas they had surplus proceeds in another bank. If the exporters were given two-week notice to submit proof of surplus export proceeds to compensate the shortfall, the levy of penalty could be avoided. The State Bank director agreed to the plea.

Most of the agenda submitted in advance of the meeting was from the Council of Textile Associations (CTA) and the Pakistan Bedwear Exporters Association(PBEA).

The participants took a serious note of lack of interest in the meeting which was held after three months and decided that exporters associations absenting from three consecutive meetings would be debarred from participation.

The meeting discussed a proposal submitted by the PBEA to withdraw the export re-finance facility on export of yarn above 30 counts and the State Bank director promised to study the demand. He also agreed to study the proposal that the exporters making exports on L/Cs should be allowed a preferential rate of exchange which is two percent better than the normal FIBR.

The export cell rejected the demand of the exporters to consider L/Cs as collateral for export re-finance and no further security be asked by the commercial banks.

The meeting also did not agree to the proposal that in case of major discrepancies in the documents the finance should be allowed on suitable guarantee which should be on nominal rates and as soon as the documents were accepted the guarantee should be released.

The meeting was attended by representatives from CTA, PBEA, Aptma, Knitwear Association and EPB.