The State Bank of Pakistan (SBP) had received requests for Rs. 610.2billion until 7 January 2021, under the Temporary Economic RefinanceFacility (TERF) for the establishment of new industrial units to supportsustainable economic growth.
The Adviser to the Prime Minister for Commerce and Investment, Razak Dawoodtweeted that Rs. 293.5 billion of the total amount had already beenapproved under the TERF from the end of April 2020 to 7 June 2021.——————————
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The TERF scheme had been launched in March 2020 for a period of one yearand provides long-term concessionary refinance at five percent formanufacturers and exporters.
The scheme is available through banks and development finance institutions(DFIs) to all the economic sectors except the power sector, for which theState Bank of Pakistan’s (SBP) refinance facility for renewable energyprojects already exists. Additionally, its maximum limit is Rs. 5 billionper project.
According to a statement by the adviser, the TERF has shown significantgrowth over the last nine months, which is evident from an increase in therequested amount from Rs. 36.1 billion by the end of April 2020 to Rs.610.2 billion by 7 January.
He added that “Over the same period, the approved financing has reached Rs.293.5 billion from Rs. 0.5 billion”.
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Dawood remarked that the scheme had brought substantial investments toPakistan via the purchase of imported and locally manufactured plants andmachinery for the setting up of new projects.
His tweet read: “This clearly shows a willingness of our business communityto invest when the government has the commitment through good policies”.
In another tweet, the adviser stated that his ministry had approved anamount of Rs. 213 million for the drawing back of payments of local taxesand levies (DLTL) of the non-textile sector.
He wrote, “These are now with SBP and will soon be disbursed to therelevant exporters”, adding, “our policy is not to put any working capitalconstraints for our exporters”.
