ANNOUNCEMENT 12 Mar 2013

In March 2013, the government of Pakistan announced .

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 12 Mar 2013 | Removal date: open ended
Still in force

Interest payment subsidy

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 SECTORS

 

AFFECTED PRODUCTS

 
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