The State Bank of Pakistan (SBP) is ready to initiate a scheme for financing of up to Rs10 million for the cottage industry without any collateral.
This was revealed by the central bank’s governor, Dr Reza Baqir, while speaking to high-ups of the Lahore Chamber of Commerce and Industry (LCCI) on Monday.
Baqir said that the government would give a guarantee to banks against losses and would invite expressions of interest from the banks for inclusion in the scheme. He informed that end-user rate for small businesses and cottage industry would be 9 per cent under the scheme, which otherwise got loans at 24pc.
“To facilitate the growth of IT sector, particularly the startups, foreign exchange laws have been relaxed and made more business-friendly,” he said, adding that foreign funding in the IT sector would be facilitated by easing the laws while banks had been directed to handle payment issues faced by IT companies.
“IT companies can now get web and digital services from abroad for up to $200,000 without approval of the State Bank. Previously, this limit was $10,000,” he said.
Moreover, speaking about the Temporary Economic Refinance Facility (TERF) scheme, Dr Reza Baqir said that Rs436 billion in financing had been approved and most of the funds had been disbursed and the remaining would be cleared soon.