Please refer to SMEFD Circular No. 11 dated July 01, 2010 read with SMEFD Circular Letter No. 01 dated January 15, 2011 on the captioned subject.

2. In this connection it is advised that Ministry of Finance, Government of Pakistan has released budgetary allocation on account of mark up differential in respect of the beneficiaries of Other Eligible Sectors, for the period 01-07-2010 to 31-12-2010.

3. Accordingly, banks/DFIs may calculate the amount of mark up differential on outstanding loans of Other Eligible Sectors, on the basis of rate of mark-up differential given in above circular letter (viz. 5.32%) & keeping in view the terms & conditions contained in the Scheme. They may submit duly completed claims at SBP-BSC (Bank), Peshawar for reimbursement for the period 01-07-2010 to 31-12-2010 as per claim form attached to SMEFD Circular No. 11/2010, latest by February 28, 2011.

4. However, MFBs may claim mark up rate differential to the extent of 22.5% p.a. i.e. differential between 7.5% p.a. and Weighted Average Lending Rates of MFBs i.e. 30% p.a. or actual rate whichever is lower, as communicated in our letter No. SMEFD/Relief-KPK, FATA / X / 2010 -1779 dated September 24, 2010 addressed to MFBs.

      Other instructions on the subject shall remain unchanged.