KARACHI (APP) - A new law entitled 'Credit Bureau Act is in the pipeline. This was stated by Deputy Governor State Bank of Pakistan (SBP) Muhammad Kamran Shehzad. He was addressing members of Multan Chamber of Commerce and Industry (MCCI) in the Chambers premises, says a issued here on Monday. The statement pointed out that Kamran said that under Section 25 A of the Banking Companies Ordinance, 1962, CIB report is a confidential document and thus borrowers request to access their reports through banks network cannot be acceded to at this point in time. However, with the enactment of the new proposed law, borrowers will be able to obtain a copy of their Credit Information Bureau (CIB) reports, he added. Mr. Kamran said that none of the SBP regulations place any lending restrictions on financial institutions against borrowers whose overdues are appearing in eClB reports. 'CIB reports just show the past behaviour of the borrowers and financial Institutions (Fls) use CIB reports as a helping tool for making credit decisions, he added. Responding to various Queries, he said that the central bank provides incentives and encourages the banking industry to increase their outreach and extend loans to fresh borrowers. He said the State Bank has recently launched the Credit Guarantee Scheme which encourages banks to lend to fresh borrowers. Kamran said that SBP has not put any restriction on banks lending to fresh entrants. 'Banks have their own credit policies and risk mitigation practices which might drive them to take a positive or negative decision about a borrower with no business history, he added. SBP Deputy Governor said that the central bank is committed to develop backward and forward linkages of agriculture through financing to agro-based industry. In this regard, a credit scheme has recently been extended to rice husking and cotton ginning mills while similar scheme for silos and cold storages is also being developed, he said and added that banks are also allowed to extend financing to food processing units, for grading and packaging of fruits and vegetables, citrus plants etc. Kamran clarified that banks are allowed to finance farmers for construction and maintenance of water courses, installation of drip and sprinkler irrigation systems, purchase of tube wells, etc. Further, government had also provided subsidy on drip and sprinkler irrigation systems, he said and added that, however, the scheme did not work as farmers ware reluctant to use the system due to lack of technical know-how. Therefore, farmers associations and other stakeholders need to facilitate farmers in the areas of training and capacity building, he stressed. Kamran highlighted some of the recent initiatives of SBP to facilitate industrial growth through export promotion when economy was in recession as a result of both internal and external factors. He said that some of these initiatives include: 100% refinancing under its Export Finance Scheme (EFS) and long Term Financing Facility (LTFF), performance-based mark up rates for high performers, extension allowed in Repayment Period under Part-I of EFS from 180 days to 270 days for exporters who availed financing up to 85 percent of the contract value, waiver to avail export finance up to end June, 2010 for exporters having overdue proceeds. Grace period of one-year was allowed in the repayment of principal amounts on the outstanding financing under the Long Term Financing Scheme etc. He informed that the exports of computer software are admissible for availing facilities under Export Finance Scheme and Rs. 382 million is outstanding against Software exports. He said that SBP has introduced refinancing schemes for modernization of Cotton Ginning and Rice Husking Factories with a view to enhancing quality of their outputs and value added chain. Financing under the schemes is available at concessional rates for import/local purchase of new plant and machinery for BMR purpose. 'We are considering extension of the schemes to other growing SME sectors like cutlery, surgical instruments, sport goods and marble also, he added. He said the SBP in its Prudential Regulations for SMEs has already allowed a clean limit of Rs. 3 million to banking industry for the SME sector, accompanied by moral-suasion to banks for increasing their outreach to small enterprises by keeping in view their target market, transaction cost and risk appetite. Regarding MCCI demand for provision of internet banking, he said that it is a business proposition at the end of the respective financial institutions. 'A number of banks are already providing internet banking, SBP Deputy Governor added. Responding to another query, he said the rationalization/uniformity of the schedule of charges may not be possible as each individual bank has its own business strategy keeping in view its customer profile, risk appetite, marketing strategy etc. SBP as a matter of policy does not interfere in banks product pricing process, he said, adding the customer is free to shop around and choose a bank which suits his / her needs and the budget. Kamran assured the business community that the State Bank would continue extending full support to the entrepreneurs for achieving the common goal of economic growth and prosperity of the nation. All partners of growth and development need to play their due role in the respective areas and make judicious use of the available resources to enhance the growth and productivity levels, he added.