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–>Relaxation provided to exporters under part II of export finance scheme for FY 2011-2012 has been welcomed by Towel Manufacturers’ Association of Pakistan (TMA).
Chairman TMA, Feroze Alam Lari in a statement issued to the press here on Wednesday said: “On account of frequent power and gas load shedding, exporters could not meet their export targets by June 30, 2012, resultantly, Governor State Bank of Pakistan, Yaseen Anwar very kindly sanctioned a two-month relaxation to the exporters for achieving required export refinance part II performance.”
Hailing the decision, he assured the Governor for timely repatriation of export proceeds from foreign buyers and expressed the hope that it would improve foreign reserves of the country.
Chairman, Banking Sub-Committee of TMA, Pervez Ahmed in a letter sent to the Governor said due to slow economic activity internationally and heavy shortage of power and gas due to load shedding in the country, exporters could not meet their export target by June 30, 2012. He assured that relaxation will help exporters to achieve required export refinance part II performance besides it will help them to repatriate their export proceeds within the stipulated period which will ultimately improve foreign exchange reserve and balance of payments position.
The State Bank of Pakistan circular issued on June 29 said: “In order to address the problems of delay in meeting export orders due to heavy shortage of power, it has been decided to allow an additional period of two months for the exporters having shortfall in required performance under part II for the FY 2011-12.
Accordingly, they may include entries showing realization of export proceeds during July and August 2011 in their EF-1 statement for the year 2011-12. However, exporters having met the performance requirements of the scheme shall submit EF-1 statement for the purpose of verification of FEOD during July-August, 2012 as usual.”
The above relaxation is only for the purpose of allowing extended period (i.e. till August 31, 2012) for matching performance requirement and in no way be construed as an extension in export proceeds realization period as laid down under foreign exchange rules and regulations.
Further those exporters who avail above benefit of extension in performance period shall not be allowed to avail benefit of incentive based rebate of mark up (under SBP SMEFD circular No. 6 of 2009) for the year FY 2011-12. Other instructions on the subject shall remain unchanged, the circular said.
Copyright Business Recorder, 2012
Source Article from http://www.brecorder.com/cotton-a-textiles/185/1213377/
