KARACHI (July 12 2003) : The State Bank has decided that exporters of services and consultancy will be entitled to financing facility under Export Finance Scheme Part II from current financial year (2003-04) on the basis of export proceeds realised by them from export of consultancy services for the specified sector.
The State Bank on Friday issued a circular which says that it has been decided that exporters of the consultancy services in respect of the sectors already specified by the State Bank will be eligible to avail facilities under Part-II of the Export Finance Scheme subject to following conditions:
The exporters of services and/ or consultancies shall be entitled to have financing facility under Part II of the Scheme as from the financial year 2003-04 on the basis of the export proceeds realised by them from exports of consultancy services for the specified sector.
The entitlement of part-II limit for an exporter involved in consultancy services will be fixed on the basis of the export proceeds realised by it against services provided in the same sector during the preceding year.
The amount of limit will however be fixed at 50 percent of the proceeds realised during the preceding year, for which exporter would fill in Form EE (Services Sector).
The exporter would be required to include only those export proceeds in Form EE (Services Sector) which have been reported on monthly basis.
After verification of the entries on Form EE, the bank concerned will retain Original copy of Form EE, fix the limit in favour of the exporter and will be eligible to provide finance to the exporter.
The financing bank will be entitled to avail refinance on submission of required documents.
The exporter availing the facility under Part II of the Scheme will be required to repatriate proceeds from the export of services and or consultancies from the same sector equal to two times of the finance availed and will be under obligation to submit performance report on Form EF (Services Sector), as per specimen attached, by including the proceeds realised and earlier reported on monthly basis to the banker /SBP BSC (Bank) in terms of Para 2 & 5 of BSD Circular No 41 dated October 30, 2001.
The entries in respect of export proceeds which have been utilised for reporting performance under Part I of the Scheme shall not be included or reported in Form EF (Service Sector) to avoid duplicate financing.
The exporter / bank will be required to prepare and submit the said form in triplicate to the concerned Exchange Policy Department, SBP BSC (Bank) for verification of the entries reported therein latest by August 31 following the monitoring year (July-June basis) to which it relates.
Failure of the exporter to meet performance requirements under the Scheme will continue to be subjected to fine in accordance with the provisions already specified in the cases of delinquency under Part-II of the Export Finance Scheme.
Likewise, other instructions concerning Part-II of the Export Finance Scheme will also be applicable to govern the grant of facilities under Part-II to the exporters of the Services and Consultancy.