CARACHI: As a continuation of the measures taken to make it easier to do business, the State Bank of Pakistan (SBP) has automated the verification of applications for refinancing under the Export Finance Scheme (EFS).
According to a press release in this regard, the automated verification will significantly improve the efficiency of refinancing operations and improve exporters’ access to liquidity. Thanks to this decision, refinancing applications can now be verified via an online system by banks and can be made available for performance calculation and loan eligibility within minutes.
After a brief parallel run, this automated verification of refinancing requests will permanently replace the existing manual verification performed by the Foreign Exchange Department (FEOD) and Development Finance Divisions (DFD) at SBP-BSC offices.
The new automated system allows banks to generate their exporters’ provisional export performance during the closed financial year, review it with the exporter and submit the final performance to the system electronically. Subsequently, the system will check the finalized performance and calculate the loan entitlement, which will be granted by SBP-BSC upon request from the banks.
Automated verification of refinance applications should save resources and improve efficiency by reducing turnaround times and changing hands. This will ensure prompt processing of export refinancing to exporters and provide them with easier access to liquidity, which will ultimately benefit the country’s export earnings.