FAPC is pre-shipment finance in nature and is disbursed in PKR through the bank’s own source.
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Finance is granted against a lien on a valid firm export order or contract or Letter of Credit (LC).
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Maximum tenor allowed is 180 days or as per Sanction Advice, whichever is minimum.
FAFEB is post-shipment finance in nature and is disbursed in PKR through the bank’s own source.
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Finance is granted against a lien on valid export documents on contract or Letter of Credit (LC), processed and sent through Centralized Trade Operations.
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Maximum tenor allowed is 180 days or as per Sanction Advice, whichever is minimum.
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The shipment date of goods must be prior to the finance disbursement date.
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Documents are not refused by the drawee/issuing bank, as the case may be.
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Bill of Lading is to be verified by the branch/TF from the concerned shipping company either through email or written confirmation on the letterhead of the shipping company.
FCEF (Pre / Post) is export finance in nature and can be disbursed under the FE-25 Scheme in US Dollar (USD), Pound Sterling (GBP), Euro (EUR), Japanese Yen (JPY), Canadian Dollar (CAD), UAE Dirham (AED), Saudi Riyal (SAR), Chinese Yuan (CNY), Swiss Franc (CHF), and Turkish Lira (TRY) or other FCY as allowed by SBP through the bank’s own source.
a. FCEF – Pre-Shipment
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Finance is granted against a lien on a valid firm export order or contract or Letter of Credit (LC).
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Maximum tenor allowed is 180 days or as per Sanction Advice, whichever is minimum.
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Business Team will decide the markup rate for the customer and refer the same to Treasury for their concurrence.
b. FCEF – Post-Shipment
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Finance is granted against a lien on valid export documents on contract or Letter of Credit (LC), processed and sent through Centralized Trade Operations.
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Maximum tenor allowed is 120 days or as per Sanction Advice, whichever is minimum.
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Shipment date of goods must be prior to finance disbursement date.
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Documents are not refused by the drawee/issuing bank, as the case may be.
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The branch shall arrange verification of Bill of Lading from the concerned shipping company either through email or written confirmation on the letterhead of the shipping company.
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Business Team will decide the markup rate for the customer and refer the same to Treasury for their concurrence.
Export Refinance Part–I (Pre / Post) & Export Refinance Part–II are included in the Export Finance Scheme (EFS). EFS is governed by the SBP EFS Guidebook & SBP Regulations conveyed from time to time.
Currently, the markup rate under EFS for the borrower shall not exceed the current policy rate with a difference of 3% (banks get refinance from SBP at the prescribed rate for corporate exporters with a maximum spread of 1%, whereas for SME exporters the maximum spread is 2%). This varies with changes in the Policy Rate according to SBP circulars issued from time to time.
The State Bank of Pakistan (SBP) has enhanced the scope of EFS / IERS to allow rupee-based discounting of export bills at tenor-wise incentivized discount rates.
The State Bank of Pakistan (SBP) provides refinance to banks for onward disbursement to exporters at a concessional markup rate.
However, under the IMF Extended Finance Facility (EFF), it was agreed that SBP refinance schemes shall be phased out in five years (FY24–28). Further, banks are providing financing to eligible exporters from their own liquidity, and the Government of Pakistan has been providing markup subsidy through the Export-Import Bank of Pakistan.
Export Refinance Part–I (Pre / Post) & Export Refinance Part–II are included in the EXIM Administered Export Finance Scheme (E-EFS).
SBP has been providing refinance under the Long-Term Financing Facility (LTFF) / Islamic Long-Term Financing Facility (ILTFF) for export-oriented projects for the purchase of imported and locally manufactured new plant and machinery since 2007.
Financing under this facility is available for export-oriented projects having an export performance of USD 5 million or 50% of export sales. Financing is allowed for all sectors as per the Export Policy Order issued by the Ministry of Commerce from time to time. The end-user markup rate under LTFF / ILTFF is 3% less than the SBP policy rate. Interested borrowers can avail themselves of financing up to PKR 5 billion for a period of up to 10 years (including a grace period of up to 2 years).
However, under the IMF Extended Funded Facility (EFF), it was agreed that SBP refinance schemes would be phased out in five years (FY24–28). In this regard, banks are providing financing to eligible exporters from their own liquidity under the EXIM Administered Long-Term Financing Facility (E-LTFF) / EXIM Administered Islamic Long-Term Financing Facility (E-ILTFF), and the Government of Pakistan has been providing markup subsidy through the Export-Import Bank of Pakistan.