KARACHI: The State Bank has allowed limits of banks, as on June 30, 2008 under Export Finance Scheme (EFS) including Islamic Export Refinance Scheme (IERS), to continue till fixation of new limits for FY 2008-09. In its circular issued on Tuesday it said that export refinance limits sanctioned in favour of banks for 2007-08 are due to expire by June-end.

While, under the present system, exporters are required to submit EE-1 statement for the year 2007-08 duly verified by SBP Foreign Exchange Operations Department latest by August 31, 2008, banks would not be in a position to work out revised entitlement of limits for each exporter for availment under Part-II of the Scheme for the year 2008-09.

Therefore, in order to ensure that the financing facilities are available to exporters till finalisation of their new limits under Part-II of Scheme, it has been decided that limits sanctioned by banks to individual exporters under Part-II of EFS for 2007-08 should continue up to August 31, 2008, as usual.

This step has taken to enable the exporters to avail financing facilities under the Scheme pending preparation of EE-1 statements, their verification by the Foreign Exchange Operations Department, SBP, BSC, (Bank) and submission of the same to the Refinance Units of the concerned office of SBP-BSC (Bank).

In addition, limits of banks as on June 30, 2008 under EFS including Islamic Export Refinance Scheme (IERS) are allowed to continue till fixation of new limits for FY 2008-09,the SBP said.