February 18, 2019
Saudi Crown Prince Muhammad bin Salman visits Pakistan
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On Friday, State Bank of Pakistan released guidelines for commercial banks to give loans up to Rs 1.5 billion for business groups and companies who plan on importing plants and machinery. According to the statement issued by the central bank, the loans will be provided to the companies with at least 50% of their trade comprising of exports or their annual exports should be equivalent to US$ 5 million.
The Long Term Financing Facility (LTFF) bank scheme for Imported and Locally Manufactured Plant & Machinery will be available through conventional banks as well as Islamic banks. The financing facility can be availed for a maximum time of 10 and 5 years with two years and one year is the grace period, respectively.
The banks issuing loans to the borrowers will be allowed to charge 1.5%, 2.5%, and 3.5% for loans of 3, 5 and 10 years respectively. It is important to note here that refinancing has been given by State Bank of Pakistan.
The guidelines issued by State Bank of Pakistan can be viewed here in detail.
What sectors are eligible for this scheme?
According to the statement issued by State Bank of Pakistan, following business sectors are eligible for Long Term Financing Facility (LTFF) to buy only new plant, machinery & equipment to be used by the export-oriented projects:
Aqeel Karim Dhedhi, one of the business tycoons in Pakistan believes that this initiative will help us in blooming the business sector in the country.