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LAHORE, Aug 29 (APP):Lahore Chamber of Commerce and Industry (LCCI) on Tuesday urged Caretaker Federal Minister for Commerce Dr. Gohar Ejaz to immediately resolve the grievances of exporters regarding new guidelines communicated to banks about SBP Refinance Scheme.
“New guidelines are bound to hit the exporters hard besides adding to the miseries of the already dwindling economy,” according to LCCI spokesman here, the Lahore Chamber’s President Kashif Anwar stated this in a letter addressed to Federal Minister for Commerce after receiving various complaints from LCCI members.
The LCCI President said that LCCI member firms representing export sector were facing serious issues with regard to new guidelines communicated to banks about SBP Refinance Schemes. The exporters were economic backbone of the country and their issues must be addressed on priority basis particularly at the moment when they were facing quite tough time.
He said that the commercial banks were informing the exporters about the information circulated by SBP which was binding them to reduce the released funds to exporters against the export limits exposure for refinancing on August 31, 2023 at the time of rolling-over the extended credit limits. By virtue of this act, they were asking either to pay back funds before above-mentioned date or commercial banks would provide them from their own sources at the rate of 25 percent (22 percent KIBOR + 3 percent Banker Spread), he maintained.
Kashif Anwar apprehended that this act would seriously damage the country’s export sector which was already under huge burden. It could be impossible for the exporters, who were already meeting the criteria set by the State Bank, to follow the new instructions on a such short notice.
He added that at the same-time, most of the exporters had not received their approved EE Statements which were still in process with the State Bank. So would it be fair enough to curtail their limits without considering their performance even in such miserable economic conditions.
He said that refinancing rate for exporters had been increased from 3 percent to 19 percent gradually within last two years with the arguments of inflation based increment, somehow exporters were still trying to manage this massive increase but this new policy of curtailment would do severe damages to their working capital capabilities and cost of doing business to compete with international suppliers.
“This would disrupt the slight leverage available to the export sector. We are of the concerted opinion that such policy shifts ought to be taken through due deliberation and consensus of the private sector stakeholders.” the LCCI President said and urged the Federal Minister for Commerce Dr. Gohar Ejaz to reconsider this policy change and find a more balanced approach that takes into account the challenges faced by exporters.
The LCCI President believed that a fair and supportive policy would not only help exporters but also contribute to the overall economic growth of the country.