IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 12 Mar 2013 | Removal date: open ended
Still in force

Loan guarantee

On 12 March 2013, the State Bank of Pakistan (SBP) issued Ciruclar No. 6 (2013) notifying the interest rate subsidy and credit guarantee facility for the modernization of rice husking mills in the province.
The scheme includes the following components:

  • For Small and Medium Enterprises, credit is available at the rate of interest of 9% for financing up to 5 years. Under this measure, the end-user rate will currently be subsidised to 2.75% per annum.
  • Banks will receive a credit guarantee of 30% against the outstanding loans.
  • The maximum tenure of loans will be 5 years and the maximum loan amount for each borrower is capped at Rs. 10 million (USD 0.1 million). 

 
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

011 Cereals
1006 Rice.
100610 Rice in the husk (paddy or rough)

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