FAISALABAD: State Bank of Pakistan (SBP) is providing cheap financing facilities with minimum markup rate to 5 important segments for the speedy, balanced and systematic industrial, economic and commercial growth in the country.
This was stated by Chief Manager SBP Faisalabad, Waqas Kashif Bajwa while addressing an awareness session on Export Refinance Scheme.
He said that economic growth is tagged with multiple factors, however, the provision of finance is the sole responsibilities of SBP.
Pointing out the 5 major sectors, he told that these include SME, women entrepreneurs, promotion of renewable energy resources, Islamic banking and up-gradation of industrial units. He briefed about the salient features of these schemes and told that among these include short and long-term measures.
Regarding export refinancing scheme, he said that this is the oldest scheme introduced in 1973. Under this scheme working capital is provided for 180 days at a markup rate of only 3 percent, he added. Similarly, the foreign proceeds are to be repatriated within another 180 days. He said that 99 percent exporters are availing from this facility as its negative list is very negligible.
The ultimate objective of this negative list is to protect the domestic value-added sector. He also explained the part 1 and 2 of this scheme with other modalities and told that Faisalabad based exporters are fully utilizing this scheme.
Regarding loans for renewable energy, he told that under this scheme loans could be procured for a period of 10-12 years with a fixed markup rate of 6 percent.
He said that people should avail from this scheme by setting up their own units to meet their domestic, commercial or industrial needs.
Commenting on the problem confronted by the SME sector in getting fresh loans, the Chief Manager said that SBP has declared it mandatory for all commercial banks to allocate at least 10 percent of their total loan portfolio for the SME sector.
He further said that earlier there was no clear demarcation between small and medium units which has now been clarified explicitly.
Regarding long term finance, he said that under this scheme subsidized loans up to Rs. 1.5 billion can be applied which can be provided for a period of 10 year at a markup rate of 6 percent. “It can be used for up gradation, balancing and modernization of existing industrial units,” he added.
Regarding loans allocated for the women entrepreneurs, the Chief Manager SBP said that bank provides this loan at zero markup in addition to sharing 60% of the loss if incurred. The concerned scheduled bank will provide this loan at only 5 percent markup as the objective of this scheme is to encourage the female entrepreneurs to start their own businesses.
He further said that Islamic Banking is yet another sector which is growing at a much faster pace. “We are encouraging it to cater to the needs of the people who are inclined towards Islamic Banking,” he said and added that as it is comparatively new sector compared to the conventional banking.
He also discussed the issue of KIBOR and said that SBP as well as other banks are also trying to resolve this issue without any unnecessary delay.
Regarding SME loans to power looms and sizing sectors, he said that initially these sectors were not included in the scheme. He asked representatives of the concerned sectors to apply through FCCI and their concerned associations with proper justification to include these sectors in this scheme.
Earlier in his welcome address, Shabbir Hussain Chawla, President FCCI thanked SBP for organizing this awareness session on refinance schemes launched by SBP.
President FCCI and SVP also decorated Muhammad Younis and Muhammad Rashid of SBP with FCCI pins.
Secretary General FCCI Abid Masood and Ms. Iqra Qadeer Secretary FWCCI were also present.