SBP provide exporters an increased limit of Rs 190 billion under EFS

KARACHI: In order to further facilitate the exporters, the State Bank of Pakistan (SBP) has enhanced the limit of refinancing provided to the banks under the Exports Finance Scheme (EFS) by Rs100 billion.

According to a statement issued by the central bank today, under Exports Finance Scheme banks will now have overall limits of Rs700 billion for the exporters for FY21.

Moreover, to promote export-oriented investment, Rs90 billion have also been allocated under Long Term Financing Facility (LTFF) for the FY 21.

“This amount is, in addition, to limit of Rs100 billion already allocated to banks/DFIs under Temporary Economic Relief Facility (TERF) – a concessionary refinance scheme for setting up of industrial units,” SBP said.

Export Finance Scheme and Long Term Financing Facility are two of the oldest schemes of SBP under which concessionary financing is provided to the exporters, it added.

The central bank further informed, “EFS are operational since 1973 to meet short term financing needs of exporters, while LTFF has been available 2008. For both the schemes, their Shariah-compliant versions are also available”.

Since the emergence of Covid-19, SBP has taken several measures to counter its impact on the economy and safeguarding the country’s exports has been a key priority.

It is expected that with the above already provided relaxations, which were widely appreciated by the business community; the above enhancement of around Rs190 billion in limits will cater to exporters’ cheaper liquidity requirements.

“SBP is closely monitoring the situation and is ready to take any further actions required to support the export sector, the statement read.