Incentive Data

Long Term Financing Facility (LTFF) at Concessional Rates.

Consolidated and Updated Instructions on Long Term Financing Facility (LTFF) for Imported and Locally Manufactured Plant & Machinery

 

1. Scope and Eligibility:

 

  1. Under LTFF, Participating Financial Institutions (PFIs) can provide long term local currency finance for imported and locally manufactured new plant and machinery to be used by the export oriented projects (Sectors allowed as per the Export Policy Order issued by Ministry of Commerce from time to time are eligible under the scheme). The facility will be available to the export oriented projects with at least 50% of their sales constituting exports or if their annual exports are equivalent to US$ 5 million, whichever is lower.

 

Source:

  • SBP’s Instructions on Long Term Financing Facility (LTFF) (https://www.sbp.org.pk/MFD/2018/Instructions-LTFF.pdf)

 

            Long Term Financing Facility (LTFF) - Re-fixation of Rates of Service Charges

 

            Please refer to IH&SMEFD Circular No. 02 dated January 30, 2015 on the captioned subject.

 

2.         It has been decided that mark-up rates for end users under SBP’s Long Term Financing Facility (LTFF) will be 6.00% for a maximum period of financing up-to 10 years, with effect from July 01, 2015 till further instructions. However, spread of Participating Financial Institutions (PFIs) remains the same viz. 1.50%, 2.50% & 3.00% for financing up-to 3 years, 5 years & 10 years respectively without changing maximum rate for end users (viz 6.00%). SBP’s refinance rates will be adjusted accordingly for each term of financing.

 

3.         Other instructions on the subject shall remain unchanged.

 

Source:

  • SBP’s Circular No. 10 of 2015 dated July 31, 2015