Reference is made to SBP's "Refinance Scheme for Working Capital financing of Small Enterprises and Low-End Medium Enterprises" issued through IH&SMEFD Circular No. 09 of 2017. However, Shariah compliant alternative of this scheme was not available.

2.         Now, SBP is introducing a Mudarabah based "Islamic Refinance Scheme for Working Capital Financing of Small Enterprises and Low-End Medium Enterprises (IWCF)". SBP shall make Mudarabah investment in general pool of Participating Islamic Financial Institutions under the scheme.

3.        Financing shall be initially available to meet the working capital requirements of below mentioned SME sectors.

Information Technology (IT)	Gems and jewelry
Furniture	Leather industry
Surgical goods	Fruits, vegetables and food processing & packaging
Dates processing	Printing & packaging

4.   Small Enterprises (SEs) as defined in SBP's Prudential Regulations (PRs) for SME financing are eligible under the scheme. Maximum financing limit for SEs is the same as defined in SBP's relevant PRs.

5.   Medium enterprises (MEs) with annual sales turnover of upto Rs 300 million are eligible under the scheme. Maximum financing limit for MEs is Rs 50 million.

6.   Maximum financing tenor under the scheme is one year.

7.  The banks/DFIs may submit their requests for the status of Participating Islamic Financial Institution. They may also apply for allocation/ assignment of limit under the scheme. These requests may be submitted within 30 days from the date of issuance of this circular.

8.   Details of the scheme, and required documents are provided in the attached Annexures.

Encl:

1. Annex-I: Islamic Refinance Scheme for Working Capital Financing of Small Enterprises and Low-End Medium Enterprises (IWCF)
2. Annex-II: Documents for Islamic Refinance Scheme for Working Capital Financing of Small Enterprises and Low-End Medium Enterprises (IWCF)