1. Islamic Export Refinance Scheme

2. Structure of Presentation
Objectives of the scheme
SBP-IBI arrangement
Limit
Musharaka Pool
Profit & Loss Sharing
IBI - customer arrangement
Part I
Part II
Penalties

3. Objectives of the Scheme
To Provide Liquidity to Islamic Banks for export financing
To Promote Exports
To change Composition of Exports

4. SBP – IB/IBB Arrangment
Distinctive Features
Musharaka between SBP & Bank
Profit and Loss sharing of Musharaka Pool
Payment of Provisional Profit
Takaful Fund for SBP

5. Limits under IERS Assigned Annually – Reviewed Quarterly
SBP’s internal Criteria
1.5 times equity for IBs
20% of EFS for IBBs
SBP’s considerations while assigning limits

6. Musharaka between SBP & Bank
Minimum 10 blue chip companies
Blue Chip companies criteria
Credit Rating of B+ or higher or
Good Track record on the stock exchange (if listed) or
ROE of previous 3 years > EFS rates and
NO adverse CIB report
SBP contribution to Pool up to investment provided
Bank contribution equal to or more than SBP’s
Pool exposure to any one sector < 50%

7. Profit & Loss Sharing Gross profit PLS as per weightages assigned
Less provisions for year
Plus recoveries against earlier provisions
PLS as per weightages assigned
EFS rates used as benchmarks
What is Provisional Profit?

8. Takaful Reserve Purpose How it is created
SBP’s share of losses shall first be met from the Takaful fund.
How it is created
Differential amount of SBP’s share in Profits (Actual Profit as per Audit less Provisional Payments)
Takaful Reserve is for SBP only – Not Banks

9. IB/IBB & Customer Arrangement
Similar to EFS
IERS is available as:
- Part-I (Transaction Based) DE/IDE both for pre-shipment
- Part-II (Limit based on previous Performance) DE only

10. IERS for Exporters Part I Part II
Indirect Exporters as well as Direct Exporters
Direct Exporters only
Tenor
IDE-120 days;
DE-180 days
180 days
Document for availing
IDE: Form 4 ILC/SPO/ Financing Agreement
DE: Form 3/ FEO/ELC/ Financing Agreement
Limit assigned based on EE -1
Form 3
DP Note
Documents to submit
IDE: Invoice, Delivery challan /GNR) Truck/Railway Receipt, DE: Original Duplicate of Form E, BL/AL, Invoice, EPRC
EF-1
Substitution
Allowed
Not Required

11. Penalties / Fines
For defaults/ breaches in agreement fines are charged from the Exporter & banks

12. The Scheme is available on SBP website

13. Thank you