With a view to encourage the sponsors of Rice Husking Mills / Automatic Sella Plants to modernize their mills/units to produce quality rice, SBP is introducing a new medium to long term financing Scheme. Financing facilities under the Scheme shall be allowed subject to the terms & conditions prescribed under scheme for “Refinancing Facility for Modernization of Small and Medium Enterprises (SMEs)” details of which are attached as Annexures.

2. Under the Scheme financing shall be available at subsidized rates for import/purchase of new Rice Husking Machines, Paddy Driers and Parboiling Plants by the sponsors of Rice Husking Mills / Automatic Sella Plants. The rates of mark-up under the Scheme shall be as under:-

State Bank of Pakistan has issued the following details about refinancing facility for modernisation of Small and Medium Enterprises (SMEs) communicated through its circular No. SMEFD 17 dated November 2, 2009.

The State Bank of Pakistan (SBP) has decided to phase out the subsidies on mark-up for export-oriented units as the government has assured the International Monetary Fund (IMF), sources told Business Recorder on Friday. The IMF, by enhancing Pakistan's stand-by loan programme by $4 billion to $11.2 billion for current account payment, has set some new targets, which have to meet country for regular payment of board's loan tranches.

As per IMF second Letter of Intend (LoI) issued on August 26, the government has assured IMF that SBP will rationalise its refinancing schemes and eliminate the subsidies resulting from below market interest rates. Federal minister for finance Shaukat Tarin and Governor State Bank of Pakistan Syed Salim Raza had signed on the LoI, in which the removal of subsidies on markup for export-oriented loans has been assured by the government.

State Bank of Pakistan introduced Export Refinance Loan Scheme for the exporters with an aim to boost exports of non-traditional items in Pakistan. The export refinance loan scheme is bifurcated in two parts i.e. Part I & Part II. Under Part-I, the refinance loan is given on pre as well as post shipment basis for export of eligible commodities. This refinance loan facility is provided on a case-to-case basis. Under Part-II, an exporter may avail the export finance limit, based on his last year’s export performance in respect of eligible commodities. The process of disbursement of refinance loan through export refinance schemes is operationally carried out through the field offices of the Bank. These offices have meaningfully contributed towards disbursement of export refinance loan at industrial centers of the country through commercial banks. The various sectors of business facilitated by this scheme include textile, carpets, telecommunication, IT, electronics, leather, frozen seafood etc.