Incentive Data

Long Term Financing Facility (LTFF) at Concessional Rates.

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

Please refer to IH&SMEFD Circular No. 10 dated July 31, 2015 on the captioned subject.

2. It has been decided that under SBP’s Long Term Financing Facility (LTFF), the mark-up rates for the borrowers of Textile Sector will be 5.00% for a maximum period of financing up-to 10 years, with effect from November 02, 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 5.00%). SBP’s refinance rates for banks will be adjusted accordingly for each term of financing.

3. Spinning and Ginning Sectors have been included in the list of Sectors eligible under LTFF. Therefore, banks / DFIs can provide 100% financing for new imported and locally manufactured plant, machinery & equipment to be used by the Export Oriented Projects of Spinning and Ginning Sectors, keeping in view the terms and conditions of the LTFF. This will supersede the instructions contained in SMEFD Circular No. 08 dated April 21, 2009 in terms of which only 50% refinance facility was allowed to the six processes of Spinning Sector.

4. Other instructions on the subject shall remain unchanged.


IH&SMEFD Circular No. 18 of 2015, State Bank of Pakistan