Export Finance ………… On a Straight Path

ISLAMIC EXPORT REFINANCE SCHEME (IERS)

IERS has been prepared by SBP, as the Shariah Compliant alternative to the Export Refinance Scheme (ERS) with the aim of providing finance at concessionary rates to exporters. DIBL can apply to SBP for allocation of ERF limit in favor of DIBL.

Since the list of eligible commodities to be exported, operations of the scheme in terms of procedures/documentation and submission of relevant statement are essentially the same as under ERS, the distinctive features of the scheme are taken care by DIBL.

Salient Features of IERS

Under IERS the State Bank of Pakistan (SBP) shall provide finance to the DIBL on Musharakah (profit and loss sharing) basis. The branches shall be mandated to finance exporters (eligible under the scheme) through approved modes of Islamic Finance. (This in case of DIBL is Murabahah).