KARACHI - The State Bank of Pakistan announced Thursday rates of fine for the export borrowers on facing shortfall in projected exports under Long Term Financing Scheme. According to circular No 07 dated December 31, 2007 regarding shortfall in projected export sales, in case projections made by the borrowers in respect of export sales are not met, following rates of fine will be applicable:- a) In case actual exports sales are short up-to 10% of projected exports which has been reported by the borrowers, to the financing bank/DFI, at the time of availment of financing under LTFF Scheme, there will be no fine on the borrowers. B) In case actual exports sales are less than 50% of projected exports the borrower will pay Paisa 37 per day per Rs 1000/- or part thereof, on adjusted value of outstanding refinance under LTFF Scheme. In case actual exports sales are less than 50% of projected exports, paisa 28 per day per Rs 1000/- or part thereof, on adjusted value of outstanding refinance under LTFF Scheme will be charged as a fine from the borrowers. SBP circular further said that adjusted value will be derived by multiplying the percentage of shortfall in export sales with outstanding amount of refinance under the Scheme. E.g. outstanding refinance as of 30-06-2010 is Rs 500 million and borrower exported equivalent to US $ 2.5 million during FY 2009-10, instead of projected exports of US$ 5 million, the adjusted value of outstanding refinance would be Rs 250 million (500+50%). However, no fine shall be charged in case the borrower achieve minimum export target prescribed under LTFF scheme (viz. 50% of annual sales or US$5 million, whichever is lower). Further, financing banks/DFIs shall continue to keep track of borrowers export performance; and submit the position to the inspection teams of SBPs Banking Inspection Department at the time of their inspection, if so desired, SBP circular added.