SBP expands Export Refinance scheme to improve exports, forex inflows

February 16, 2022: With a view to further facilitate exporters and encourage timely inflow of export proceeds, the State Bank of Pakistan has enhanced the scope of Export Finance Scheme (EFS) - both conventional as well as Sharia-based, allowing the exporters to obtain financing against their export proceeds through discounting of export bills/receivables, a press release issued by SBP showed today.

Discounting of bills/receivables is essentially a financial transaction where the exporter surrenders its future export proceeds and obtain financing in PKR for the remainder of the time period of exports proceeds realization.

This initiative will help exporters meet their working capital needs and also incentivize them to bring in their export proceeds in a timely manner that will help to improve foreign exchange inflows in the interbank market.

The exporter can obtain financing from banks by discounting their export bills/receivables (both post-shipment & pre-shipment) under this scheme, at rates ranging from 2% to 3% depending upon the tenor of discounting. In the first three months, this facility will be available at introductory lower rates of 1% and 2%. Banks will obtain refinance equal to the discounted amount for the tenor of discount at tier-based rates ranging from 1% to 2%.

In addition to supportive rates for working capital needs of exporters, SBP has also provided special relaxation under this facility by increasing the export proceeds realization period up to 180 days if the exporter avails this discounting facility.

Press Release