'Mark-up & Investment' to support Pakistan textile sector

31 Aug '12

4 min read

Under the scheme, the equity investment means financing of imported machinery and technology through own sources and that will be determined from C&F value of eligible machinery/technology mentioned in LC retired for this purpose. SMEs can also import eligible machinery / technology through Contract. However, to claim Investment Support, such SMEs shall be required to produce reliable evidence about actual import of requisite machinery / technology and payment to the foreign supplier through banking channel.

For Investment Support, bank guarantee is to be obtained from the units other than SMEs, (acceptable to the banks/DFIs concerned), to safeguard the interest of Federal Government and concerned banks/DFIs.

State Bank has strictly instructed the concerned banks / DFIs that they should ensure as per their own arrangements, including an undertaking from the beneficiary of this scheme, that facilities are not availed in duplication [i.e. plants & machineries supported under TUF Scheme are not financed under SBP’s Long Term Financing Facilities or beneficiaries have not availed any other support or concession of the Government against such plants & machineries].

Further, banks/DFIs should also ensure that the claim is strictly in compliance with the terms and conditions prescribed in the TUF Notification Nos. 3(18)TID/10-P-I, 3(18)TID/12-P-I, TUF Document and SBP’s IH&SMEFD Circular No. 03 dated August 30, 2012. Claims duly completed in all respects and countersigned by Compliance or Internal Audit of the concerned bank/DFI, shall be processed by the offices of SBP-BSC (Bank) subject to the condition that documents/papers as mentioned in prescribed forms have been enclosed with the claims, which shall be subject to subsequent detailed scrutiny. Eligible amount of Support shall be released / reimbursed to the banks / DFIs through credit to their accounts maintained with the office of SBP-BSC (Bank), subject to the availability of budgetary allocations.

The State Bank of Pakistan (SBP)

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