With a view to facilitate exporters more and encourage the timely inflow of export proceeds, the State Bank of Pakistan (SBP) has enhanced the scope of the Export Finance Scheme (EFS) — both conventional as well as Sharia-based — to allow exporters to obtain financing against their export proceeds through the discounting of export bills/receivables.
The discounting of bills/receivables is essentially a financial transaction where the exporter surrenders future export proceeds and obtains financing in Pakistani Rupees for the remainder of the time period of the exports proceeds realization.
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This initiative will help exporters meet their working capital needs and incentivize them to bring in their export proceeds in a timely manner to help improve foreign exchange inflows in the interbank market.
Exporter can obtain financing from banks by discounting their export bills/receivables (post-shipment and pre-shipment) under this scheme, at rates ranging from two percent to three percent, depending upon the tenure of the discounting. In the first three months, this facility will be available at introductory lower rates of one percent and two percent. Banks will obtain refinance equally to the discounted amount for the tenure of the discount at tier-based rates ranging from one percent to two percent.
In addition to the supportive rates for working capital needs of exporters, the SBP has also provided special relaxation under this facility by increasing the export proceeds realization period up to 180 days if the exporter avails this discounting facility.
