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 |
8.30% |
2.00% |
10.30% |
Over
3 years and upto 5 years |
8.40% |
2.50% |
10.90% |
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