Islamic Export Refinance Schemes
The State Bank has been striving to ensure that the credit requirements of the genuine exporters from the banking system are not effected. In order to ensure smooth flow of credit to the genuine exporters Askari Ikhlas offers refinance facilities under the schemes offered by State Bank of Pakistan to facilitate the eligible exporters under the following modes of financing.
Export Refinance Scheme
The Refinance facilities are offered under Islamic modes of financing to cater short-term needs of the Direct/Indirect Exporters as eligible under SBP’s EFS. Askari Ikhlas, through its designated branches, provides export financing facilities to exporters for exports of all permissible manufacturing goods especially value-added products in both Part-I and Part-II as per the original Export Refinance Scheme of the State Bank of Pakistan.
The State Bank has been striving to ensure that the credit requirements of the genuine exporters from the banking system are not effected. To ensure the smooth flow of credit to genuine exporters, the SBP has already put in place the necessary mechanisms under its Export Finance Scheme (EFS), which has been in operation since 1978. The recent developments relating to the introduction of specialized Islamic banking institutions have made it imperative for us to formulate a Scheme to enable the exporter to avail SBP’s refinance through the newly established Islamic Commercial Banks against eligible commodities.
Key product features and details are as under:
| Description | Specific Details |
| Underlying Mode |
|
| Target Market | Direct/Indirect Exporters as eligible under SBP EFS |
| Purpose | To provide short term financing facilities to exporters for exports of all permissible manufacturing goods, especially value added products. |
| Maximum Limit |
|
| Expected pricing/Return | SBP IERS rate + Bank’s margin (as per SBP Policy) |
| Maximum Tenor | 180 days from the date of shipment |
| Repayment by Customers | Export proceeds or as guided by the SBP |
| Security/Collateral | Adequate security, collateral or other arrangements acceptable to the bank and as provided in the relevant manual of Islamic mode of financing and SBP’s prudential Regulation. |
Content for accordion item #3.
State Bank of Pakistan (SBP) encourages export finance to facilitate exports in the country. In order to promote exports, SBP used to provide refinance to commercial banks for onward disbursement of funds to exporters at a concessional markup rate. SBP has changed the refinance strategy and now banks will provide financing to eligible exporters from their own sources, and the Government of Pakistan (Sop) will provide a markup subsidy to the end user through Export Import Bank of Pakistan (EXIM Bank).
EXIM Bank, as a disbursing agent of the Ministry of Finance (MOF), will process the markup subsidy amount to AKBL on behalf of the Government of Pakistan.
The facility is available to eligible customers of Askari-Ikhlas under the EXIM Bank Administered Subsidy Under Islamic Export Finance Scheme (E-IEFS) in the following two parts:
| Description | Details |
|
|
| Target Market | Direct/Indirect exporters as eligible under SBP EFS. |
| Purpose | To provide short term financing facilities to exporters for exports of all permissible manufacturing goods especially value-added products. |
| Maximum Limit |
|
Pricing Return
|
|
| Maximum Tenor | 180 days from the date of shipment |
| Repayment by Customer | Export proceeds or as guided by the SBP |
| Security/Collaterals | As per the Credit Policy Manual, the relevant manual of the Islamic mode of financing and as per SBP’s Prudential Regulations. |
