IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 04 Mar 2014 | Removal date: open ended
Still in force

Trade finance

On 4 March 2014, the State Bank of Pakistan announced additional incentives for banks and exporting Small and Medium Enterprises (SME) under the existing Export Finance Scheme (EFS). 
 

  • To incentivise the banks, the allowed spread between their lending rate and the borrowing cost is increased from 1% to 2% on loans to SME borrowers.
  • Exporters can get a rebate on the lending rate based on their export performance in the previous years. The maximm rebate has been increased by 0.5 points. This higher rebate will be available to exporters based on their 2013-14 export performance.
  • Out of their total loan volume limit under EFS, banks are required to allocate at least 10% of their limit for SMEs.

 
 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

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