Reference may be made to SBP’s Financing Facility for Storage of Agricultural Produce (IFFSAP) launched through IH&SMEFD Circular No. 08 of 2010. In order to make this financing facility available through Islamic Banking Institutions (IBIs), SBP is now introducing a Mudarabah based “Islamic Financing Facility for Storage of Agricultural Produce (IFFSAP)” for IBIs and Islamic DFIs; collectively referred to as Participating Islamic Financial Institutions (PIFIs). SBP shall make Mudarabah investment in general pool of PIFIs under IFFSAP.

2.    IFFSAP will allow the customers to avail long term facility from the IBIs, for the establishment, expansion and Balancing, Modernization and Replacement (BMR) of Steel/Metal/Concrete Silos, Warehouses & Cold Storage facilities for storing agricultural produce. IFFSAP shall be effective from the date of issuance of this circular and shall remain valid till further instructions.

3.    The IBIs / Islamic DFIs may submit their requests for the status of Participating Islamic Financial Institution (PIFI). They may also apply for allocation / assignment of limit for the current financial year. These requests may be submitted within 30 days from the date of issuance of this circular.

4.    Details of facility, its Shariah Structure and documents are provided in the Annexures.

Encl:

Annex-I: Islamic Financing Facility for Storage of Agricultural Produce

Annex-II: Documents for Islamic Financing Facility for Storage of Agricultural Produce