Long Term Financing by State Bank of Pakistan
The State Bank of Pakistan (SBP) offers multiple incentives for exporters, one of which is “Long Term Financing”. The details for this may be obtained from the SBP website, linked above. We’ve reproduced a part of the introduction, below, from the Handbook for the same.
“This handbook focuses on the four long‐term refinancing facilities / scheme namely Long Term Financing Facility (LTFF); Refinance Facility for Modernization of SMEs; Financing Facility for Storage of Agriculture Produce; and Scheme for Financing Power Plants Using Renewable Energy, developed for capacity building of industrial units. The formulation of this handbook was necessitated to facilitate the stakeholder’s by consolidating the guidelines of each facility and to ease the dissemination process.
To facilitate export led growth through setting up export oriented projects LTFF was introduced to provide funds on long term basis (up to 10 years) for import of machinery and purchase locally manufactured plants.
Similarly, focusing on development of SME sector, Refinance Facility for Modernization of SMEs was launched to encourage the sponsors of SMEs to modernize their mills/units to produce quality products. Under the Facility long term financing (upto 10 years) is provided for procurement of plant and machinery. “