ANNOUNCEMENT 12 Nov 2008In November 2008, the government of Pakistan announced a change in financial export support.
NUMBER OF INTERVENTIONS
Circular No. 04 of 2008
On 12 November 2008, the State Bank of Pakistan amended the Long Term Financing Facility (LTFF) thereby providing 100% refinancing to the Participating Financial Institutions (PFIs) for credit extended to exporters. Under the original policy, the refinancing limit was set at 70%.
The LTFF was announced in 2007 to provide long term local currency financing for imported and locally manufactured plant & machinery used for certain export oriented projects. The participating companies must have annual exports of at least USD 5 million or at least 50% of their sales, whichever is lower.
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