ECONOMIC TIMES OF PAKISTAN.

• Author: Kazmi, S. Kamal Hayder
• Position: State Bank of Pakistan's additional relief measures for exporters

Byline: S.KAMAL HAYDER KAZMI

STATE BANK ANNOUNCES ADDITIONAL RELIEF FOR EXPORTERS

The State Bank of Pakistan (SBP) has announced additional relief measures for exporters in the backdrop of challenges being faced by the export sector due to the COVID-19 pandemic. A six-month extension in the shipment period has been allowed for those part-one loans for which shipment is falling due from January to June 30, 2020. In case of non-shipment after January 1, 2020 to date, the fine already charged shall be retained by the SBP BSC offices till the submission of Annexure-F (the application form used for refund of non-shipment fine) within the extended period of six months.

However, in cases where the delayed shipment fine has already been charged against the shipment falling due from January 1, 2020, the same shall be refunded. Currently, the exporters availing subsidised loans under the Export Financing Scheme (EFS) under Part-II are required to show at least two times matching export performance against the financing availed during FY 2019-20 on a daily average product basis.

"This has been reduced to 1.5 times. Likewise, the export performance requirement for FY 2020-21 will also be 1.5 times," the SBP said in a notification.

Furthermore, an additional period of six months has been allowed to the exporters for meeting the required export performance against financing of EFS/IERS-II for the monitoring period of FY 2019-20. Accordingly, eligible entries showing shipments and export proceed realisation up to December 31, 2020 are allowed to be included in the export performance of FY 2019-20. This export performance of extended period will also be considered for the entitlement of limit for FY 2020-21.

EXPORTERS: TAX REFUNDS TO BE RELEASED IN MARCH

Adviser to Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh on Friday assured exporters that the government would clear general sales tax (GST) refund claims in the current month while export rebate would be given in April. In a meeting with a delegation of exporters, the adviser expressed the government's resolve to do everything possible to address the exporters' problems and provide them relief with early release of rebate, duty drawback and GST refund.

"The government has no desire or policy to keep the money that belongs to the exporters even a day longer nor do we find any reason to delay the repayment," he said, while discussing varying proposals with the exporters. He directed the...