SBP increases refinancing limit for exporters

KARACHI: In order to further facilitate the exporters, State Bank of Pakistan (SBP) has enhanced the limit of refinancing provided to the banks under Exports Finance Scheme (EFS) by Rs100 billion, ARY NEWS reported on Wednesday.

The banks will now have overall limits of Rs700 billion for the exporters for the ongoing fiscal year 2020-21, the central bank said in a statement.

The State Bank of Pakistan (SBP) announced that to promote export-oriented investment, Rs90 billion have also been allocated under Long Term Financing Facility (LTFF) for the ongoing fiscal year.

“This amount is, in addition, to limit of Rs100 billion already allocated to banks/DFIs under Temporary Economic Relief Facility (TERF) – a concessionary refinance scheme for setting up of industrial units,” the SBP release said.

It is pertinent here that yesterday, aimed at encouraging women participation in the economy, State Bank of Pakistan (SBP) announced to enhance the financing limit under its Refinance and Credit Guarantee Scheme for Women Entrepreneurs from Rs1.5 million to Rs5 million.

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According to a press release issued by the central bank, the decision was taken in light of feedback received from various stakeholders about current financing limit being insufficient to cover the financing needs of women entrepreneurs.

“This decision is in line with the government’s policy to support and revive economic activities in the country and SBP’s key objective of improving access to finance for priority segments including women entrepreneurs,” the SBP said.