Refinance facilities are targeted loans from State Bank of Pakistan (SBP) to support exports and industrial growth with the ultimate objective of promoting overall economic development of the country. Over the years, SBP has introduced special schemes under its refinance window to ensure adequate supply of financing to the value added industries at competitive rates for enhancing their production capacity and meeting working capital requirements. These schemes mainly include Export Finance Scheme (EFS) to ensure short term credit availability for exporters and Long Term Financing Facility (LTFF) for encouraging export led growth on the long term basis. In addition to promoting exports of the country, SBP has also introduced some special medium to long term refinance facilities at subsidized rates for other sectors such as schemes on renewable energy, establishment of silos, warehouses & cold storages for storing agricultural produce and purchase of machinery for SMEs. These schemes are regularly reviewed to effectively achieve the desired objectives.

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To promote SME financing in the country by encouraging banks and DFIs to extend outreach of financial services of small enterprises in general and medium enterprises in particular, following credit guarantee schemes have been introduced. There are certain refinance schemes for SMEs as well which can viewed in the section on “Refinance Schemes”.

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SBP developed a credit guarantee scheme, funded by the Federal Government, for small & marginalized farmers which would facilitate flow of credit to small and marginalized farmers who do not have any collateral. The objective of the guarantee scheme is to encourage financial institutions to lend to small farmers who do not have adequate collateral (acceptable to bank) in order to meet their working capital requirements.

To improve access to finance to Livestock & dairy sector and to mitigate risk of loss of livestock due to disease, natural calamities & accidents, SBP, in collaboration with SECP, banks, insurance companies and provincial livestock & dairy departments has developed Livestock Insurance Scheme for borrowers. The Livestock Insurance Scheme is an essential risk mitigating tool encouraging banks to enhance flow of credit to this highly potential and underserved sector.

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