Wednesday , April 24 2024

Easy Financing Scheme offered by SBP to the Exporting Companies

Easy Financing Scheme offered by SBP to the Exporting Companies

State Bank of Pakistan taking an initiative to provide the Facility of the easy financing to the exporting companies who have 5 million dollar annual exports of services and goods or at least 50% of their sales establishing through exports (whichever is less) this facility is known as LTFF (Long term financing facility). It is necessary to know us about this facility or scheme.

This scheme contains the features like SBP offers financing at 6% yearly rates to purchase the equipment and machinery this rate is offered to the local companies for pushing them to enhance the export and helping to boost the economy of Pakistan. Through this facility exporter can purchase the better machines and equipment to improve the quality of the export goods and earn achievable profits from the buyers and can build their infrastructure or business channels to increase their productivity. Maximum availed period of the scheme shall not be more than 10 years which include 2 years as grace period and if the provided period is up to 5 years then the grace period shall not be greater than 1 year.

IT and IT related companies who are providing the services, local or foreigners and other sectors like Textile, Garments, Towels and Art, Carpets, Fisheries, Leather products, Rice Processing, Furniture, Pharmaceutical, Surgical Instruments and many other businesses are involve in this scheme.

At one side if the State Bank of Pakistan providing the facility on the other hand a person or company shall be liable to pay fine in case of any irregularity for example in case if a borrower cannot meet the expected target earnings in respect of export sales then the State Bank have right to impose fine on the borrower at a certain rate.

About Azhar Niaz

Azhar Niaz is an I.T professional working in reputable organization. Azhar is Post Graduated from The Islamia University of Bahawalpur, Pakistan.

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