Rs610bn requests under Temporary Economic Refinance Facility received

ISLAMABAD: The State Bank of Pakistan (SBP) has received requests for Rs610.2 billion until Jan 7 under the Temporary Economic Refinance Facility (TERF) for setting up of new industrial units in order to support sustainable economic growth.

Of the requested amount, the approved financing has reached Rs293.5bn under TERF during the end-April to June 7, 2021 period, Commerce Adviser Razak Dawood said in a tweet on Wednesday.

The scheme, which was launched in March 2020, will come to an end on March 31, 2021. TERF provides long-term concessionary refinance at 5pc for manufacturers and exporters.

Mr Dawood said TERF has shown significant growth over the last nine months as reflected by an increase in the requested amount from Rs36.1bn by end-April 2020 to Rs610.2bn by Jan 7. Over the same period, the approved financing has reached Rs293.5bn from Rs0.5bn, the adviser further said.

He said this scheme has brought substantial investment into Pakistan through the purchase of imported and locally manufactured plants and machinery for setting up new projects. “This clearly shows a willingness of our business community to invest when the government has the commitment through good policies,” Mr Dawood said.

The refinance under the facility is available through banks/DFIs to all sectors across the board except the power sector where SBP’s refinance facility for renewable energy projects already exists. The maximum limit is Rs5bn per project.

Mr Dawood said in another tweet that his ministry has approved an amount of Rs213 million for DLTL payments of non-textile sector. “These are now with SBP and will soon b

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