Please refer to ICD Circular No.10 dated 29^th October, 1995 along with other instructions issued on the captioned subject. 

2.         It has been decided that effective from 16^th  March,  2002 the maximum profit to be earned by a financial institution on financial assistance to be extended under Part-A (Local Sales) of the Scheme for financing Locally Manufactured Machinery (LMM-Scheme) shall not exceed 11% p.a. Where refinance is obtained from the State Bank it will be remunerated at 9% p.a. 

3.         It may also be added that hence forth the rates under LMM-Scheme (Local Sales) shall be adjusted on six monthly basis, keeping in view weighted average yields on the Pakistan Investment Bonds (PIB’s) of 3 and 5 years tenors. The rates however shall not be floating in nature for the financing facility once availed, as they would continue to be determined on the basis of the rates applicable on the date of execution of financing agreements between banks and borrower(s); and shall remain fixed for the entire period of financing. 

4.         Other instructions on the subject shall remain unchanged. 

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