STATE BANK OF PAKISTAN - BANKING POLICY DEPARTMENT

BPD Circular Letter No. 30
25th August 2004

All Banks/DFIs/ Investment Banks/ Leasing Companies/Modarbas.
Dear Sirs/Madam,

Scheme for Financing Locally Manufactured Machinery

Modifications thereof

Please refer to the captioned scheme circulated vide BPD Circular No. 25 dated 24th July 2004.

2. As you are aware, under the scheme all Participating Financial Institutions (PFIs) are required to apply for the annual limit on July-June basis during May each year. As the scheme was circulated on 24th July 2004, the prospective PFIs meeting the criteria laid down in the scheme and desirous to participate may apply for seeking their eligibility for providing facilities under the scheme, besides intimating us the quantum of their requests for limit for disbursement to their prospective borrowers during 2004-2005. These requests should reach Banking Policy Department latest by 10th September 2004.

3. Further in order to ensure consistency of the modalities of the scheme, the clause “6 d” & “9 (c)” of the scheme may be substituted with the following: -

6 (d): The State Bank shall recover the refinance provided by it to each PFI on its due date if not paid by the PFI from its account maintained with the concerned office of the SBP BSC (Bank).

9 (c): PFIs shall be allowed a maximum spread of 2% p.a on the refinance.