ANNOUNCEMENT 26 Jun 2009In June 2009, the government of Pakistan announced a change in its trade finance instruments.
NUMBER OF INTERVENTIONS
SME Finance Department Circular No. 11 of 2009 (26 June 2009)
SMEFD Circular Letter No. 13 of 2009 (14 Sep 2009)
On 26 June 2009, the State Bank of Pakistan amended the Long Term Financing Facility (LTFF), a scheme that provides refinancing for imported and locally manufactured plant and machinery used for certain export oriented projects. The amendment included the following :
On 14 September 2009, the SBP relaxed the first amendment and allowed Letter of Credits (LCs) for purchase of machinery contracted before 2007 and retired after 30 June 2007 to be refinanced under the LTFF even though they were retired through the sponsors' own sources. This relaxation is valid until 31 December 2009.
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