2.1 The Export Finance Scheme of the State Bank of Pakistan has been in operation since 1973 and has been a
major source of banks’ credit to the exporters. Over the years it has witnessed various modifications to simplify its
procedures for the exporters and the banks. With the same objective the Scheme has been revised to further reduce
the documentary requirements under the EFS as also to rationalize the procedure for availing financing facility by the
exporters of Locally Manufactured Machinery and such machinery and goods supplied a) locally against international
tenders and b) to international agencies based in Pakistan for undertaking their relief activities in Pakistan or elsewhere
in the region, provided the payments are received in foreign currency. The new scheme shall operate in three parts;
2.1.1 Part A – Performance based facility for Trade Finance of Exports – the distinction between Part-I and Part-II of
the existing Export Finance Scheme shall cease to exist, The facility shall now be offered under Part-A of the new
scheme, on pattern similar to Part II of the existing scheme. The facility shall continue to be available for 180 days, to
existing and New & Emerging Exporters (NEE) based on the entitlement calculated in accordance with their
performance as prescribed under the scheme and the limit sanctioned by the banks to the NEE. The operational details
of the Islamic Export Refinance Scheme (IERS) shall also be changed in line with the modifications in respect of Part-
A of the new Export Finance Scheme, i.e., the distinction of Part I & Part II shall cease to exist for IERS also. Similarly,
the documentation requirements shall also be modified accordingly.
2.1.2 Part B – offers transaction based facilities for i) Indirect Exporters (IDE), and for ii) local supplies against
International Contracts etc. The facility shall be available for 120 days for IDE, whereas for the local supplies the facility
shall be available for up to a maximum of 3 years.
2.1.3 Part C - transaction based facilities for the Term Finance of Exports in respect of Locally Manufactured
Machinery (LMM) items as covered under the definition of LMM under the Scheme.
2.2 The markup charged under the scheme will be linked to weighted average yields of T-Bills and PIBs as
specified in the Scheme.
2.3 The items mentioned in the Negative List of the existing EFS (along with any amendments made from time to
time) shall continue to be ineligible for financing under the Scheme. Copy of the same is attached at Annexure 1
2.4 Advance Payments shall continue to remain ineligible for finance under all parts of the Scheme, except where
otherwise permitted.
2.5 For availing finance facility under the Scheme, exporters are required to submit an undertaking that the export
proceeds realized shall be routed through the disbursing bank (bank from which EFS was availed). In the event that
export proceeds are realized through any other bank the exporter shall obtain and submit NOC from the disbursing
bank, for the same, at the time of sending documents from a bank other than the disbursing bank.
2.6 The Scheme operates on reimbursement basis and the banks are not allowed to charge a rate higher than that
prescribed by the State Bank on their financing under the Scheme
2.7 The Export Finance Scheme in respect of Consultancy Services and export of Gold Jewelry announced vide
BSD Circular No. 41 dated 30th October, 2001 and BPD Circular No.12 dated 7th April, 2003 respectively shall
continue to remain intact as at present.
2.8 Similarly instructions regarding financing facilities for goods exported from the Export Processing Zones and
participation in international exhibitions/fairs, circulated vide BCD Circular No. 26, dated 4th August, 1982 and Circular
No. 21 dated 5th September, 1983 read with Circular No. 39 dated 10th October 1985, shall continue to remain intact as at present