Export Loans
Export loans are being granted to facilitate Exporters as working capital and to boost their Exports under easy mode to continue the momentum & mainly to contribute as Inflows.
Foreign Bills Purchase (FBP)/Negotiation
Trade finance techniques where a bank buys a foreign export bill drawn under Letter of credit (LC) as long as documents/presentation are strictly complying with terms and condition of LC from exporter. Bank after completing the applicable pre-requisites on agreed treasury rate, after necessary deductions advance funds to exporter and taking on the risk of collecting payment from the foreign buyer and realize.
Foreign Bills Discounting (FBD)
Export Bills under Usance LC presented by the export-er are sent to foreign bank for collecting acceptance from them to have authenticated swift message ma-turity date of payment.
The exporter need instant amount to meet their finan-cial commitment and requesting to facilitate, Bank af-ter completing the applicable pre-requisites on agreed treasury rate, af-ter necessary deductions advance funds to exporter and taking on the risk of collecting payment from the foreign buyer on maturity and real-ize it provides instant funds to exporter.
Finance against Packing Credit (FAPC):
FAPC is pre-shipment finance in nature and is dis-bursed in PKR through bank own sources on agreed terms & conditions.Finance is granted against a lien on the valid firm ex-port order or duly advised valid Letter for credit (LC).Maximum Tenor allowed is 180 Days or as per appli-cable & case to case basis.
Finance against Foreign Bills (FAFB)
FAFB is post-shipment finance in nature and is dis-bursed in PKR through bank own sources.Finance is granted against foreign export bills under LC/Contract
Export Refinance Scheme (SBP)
The Export Finance Scheme (EFS) is in operation since 1973 with the objective to boost exports of the country. Under the scheme short term financing facilities are provided to exporters through Banks for exports of all manufacturing goods especially value added products with the exception of basic & primary commodities/raw materials.
There are two parts of EFS i.e. Part‐I (Transaction Based) and Part‐II (Performance Based).
EFS disburse on phase out plan of SBP against Export Order /Contract /LCs. The exporter has to show export proceeds equivalent to the loan amount as performance. The tenor of the facility is up to 180 days
Rupee-Based Discounting of Export Bills/ Export Receivables under EFS/ IERS
SBP has introduced Rupee-based discounting of export bills/ export receivables under existing EFS/ IERS Scheme.
This incentive is available only if foreign exchange associated with the export bill/ export receivables being discounted is sold in interbank via FX conversion and rupees are credited to the customer at the time of discounting.
It will be applicable for both post-shipment and pre-shipment export receivables.
EXIM Bank Refinance Scheme
EXIM Bank a statutory corporation established under Export-Import Bank of Pakistan Act, 2022, a wholly owned entity by the Government of Pakistan
It is grant to export finance to its customers to facilitate the eligible Exporters in line with the instructions of SBP.
- Export Finance Scheme Part I (Pre-shipment and post-shipment)
- b. Export Finance Scheme Part II (Performance based)
Disburse the eligible Exporter who meet the SBP EFS criteria
FE 25 Export Loans:
Banks are allowed to use/invest their deposits mobilized under FE 25 for financing of Import/Exports.
Banks are allowed to extend the FE 25 Export Loans backed by an LC or firm contract(s).At the time of allowing the facility, the foreign exchange component of such facilities being considered as per agreed terms. It is adjusted with the export proceeds