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

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To Provide Liquidity to Islamic Banks for export financing
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To Promote Exports
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To change Composition of Exports

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Distinctive Features
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Musharaka between SBP & Bank
Profit and Loss sharing of Musharaka Pool
Payment of Provisional Profit
Takaful Fund for SBP

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

Musharaka between SBP & Bank
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Minimum 10 blue chip companies
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Blue Chip companies criteria
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Credit Rating of B+ or higher or
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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%

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

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

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Similar to EFS
IERS is available as:
- Part-I (Transaction Based) DE/IDE both for preshipment
- Part-II (Limit based on previous Performance) DE only

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

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

The Scheme is available on SBP website http://www.sbp.org.pk/incentives/ iers.htm