Circulars/Notifications / Infrastructure, Housing & SME Finance Department  

 IH&SMEFD Circular No. 04 of 2013
January 03, 2013 

The Presidents,
All Banks

Dear Sirs /Madam,

Export Finance Facility for Locally Manufactured Machinery (EFF-LMM)

With a view to promote the export of Locally Manufactured Plant & Machinery, the State Bank of Pakistan has decided to introduce the Export Finance Facility for Locally Manufactured Machinery (EFF-LMM). The exporters can avail long term financing facilities through banks for export of eligible Plant & Machinery and Engineering Goods under the Facility. Financing facilities shall be available both at pre-shipment and post-shipment stages for a maximum period of five years. The details and terms & conditions of the Facility are given in the attached Annexure.

2.         Under the Facility financing shall be available to the exporters at the rates applicable under SBP’s Long Term Financing Facility (LTFF) for Plant & Machinery. However, banks’ spread is being increased to encourage them to extend financing to the non-traditional exporters i.e. Engineering Goods. Current rates of financing / refinancing are as under, which will be adjusted in future in line with the revision to be made in LTFF rates:

Period of financing
Rate of Refinance
Bank's Spread
End User's Rate
Up-to 3years
Over 3 years and upto 5 years


3.         The above Facility shall be effective from the date of issuance of this Circular and shall remain valid till further instructions in this regard. This Facility will supersede the instructions concerning Part-B –Export Sales of LMM Scheme as contained in ICD Circular No. 1 dated 27th April, 1987 read with subsequent amendments made from time to time.

Encl: (i) EFF-LMM Facility – Complete Instructions.

          (ii) Documents of EFF-LMM Facility


Yours faithfully,

(Syed Samar Hasnain)

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