FAISALABAD - State Bank of Pakistan (SBP) is undertaking a wide-range of development finance activities besides, its core functions, to promote export led growth in the country. For this, SBP consistently formulates and reviews its various short and long term refinance schemes to facilitate banks in meeting credit needs of their borrowers primarily exporters and export led industrialist.

Addressing an awareness seminar on export refinance jointly organised by the State Bank and Pakistan Textile Exporters Association here on Thursday, Noor Muhammad Rana, Deputy Chief Manager, State Bank Faisalabad briefly enlighten the core aspects of export refinance scheme.

The scheme was launched in March 1973 known as “Refinance Scheme for non-traditional and newly emerging exports with an objective to provide adequate bank credit for exports on attractive terms. This was 90 days (Pre-shipment) facility with a 90 days rollover option. In 1977, the scope of scheme was further enhanced to introduce a new feature of performance based finance under Part-II of the scheme that was re-named as “Export Finance Scheme (EFS)”.

Delivering presentation on long term Finance, Muhammad Maqsood, senior officer SBP said that exporters including SMEs can avail financing under the facility through participating financing institutions for new imported and locally manufactured plant and machinery. The facility will be available to the export oriented projects with at least 50pc of their sales constituting exports or if their annual exports are equivalent to $5 million, whichever is lower. Financing shall be available to the extent of the C&F value of the imported new plant and machinery and ex-factory/ showroom price of the new locally manufactured machinery.

Highlighting the scheme for financing power plants using renewable energy, he said that financing shall be available only for establishing new power plants of up to 20MW installed capacity using alternative/ renewable energy sources (wind, hydel, biogas, biofuels, bagasse cogeneration, solar power and geothermal as fuel).

Addressing the participants, Chairman Pakistan Textile Exporters Association Sohail Pasha thanked the SBP officials on presenting fruitful information about various export finance schemes of State Bank. He said that PTEA is the first textile Association to have organised a seminar in collaboration with the SBP with a view to create awareness among its members about export finance schemes.

During the ongoing presentations, the participants asked various questions in perspective of SBP finance schemes. Later, PTEA insignias were presented to the state bank officials.