- Please
refer to the captioned scheme circulated vide ISC Circular
No. 07 Dated. the 16th August, 1995.
- Under
the existing provisions of the captioned scheme, if the
landed cost of imported components used in a machine/equipment
does not exceed 80% of the Ex-factory/Show room price and
the landed cost of the imported components. Likewise the
rates of profit earned by the financial institution on finance
provided under the scheme for pre-delivery /post delivery
purpose shall not exceed 13% p.a.. Where refinance is obtained
from the State Bank of Pakistan, the bank will share in
the overall profit (before tax) of the financial institutions
concerned, subject to the maximum of 11% and 10.5% on annual
basis, on refinance granted for pre delivery and post delivery
purpose respectively.
- It
has now been decided to substitute Para (b) of the captained
scheme circulated vide Circular referred to above with the
following:-
b
(i) Individual machine / equipment using up to 20% landed
cost of imported components of the Ex-factory / Show
room price of such machine / equipment will be eligible for
100% financing under the scheme.
b
(ii) For individual machines and equipments using more than
20% imported components as described in b ( i ) above,
the entitlement for refinance would be determined after
deducting the landed cost of imported items used in
manufacturing the machinery from the Ex-Factory / Show
room price of the machinery so manufactured.
- Likewise
the maximum profit to be earned by a financial institution
on finance extended under t he scheme has been reduced to
11% p.a. Where refinance is obtained from State Bank of
Pakistan the Bank will share in the overall profit (before
tax) of the financial institutions concerned, subject to
the maximum of 9% on annual basis, on refinance granted
for pre delivery and post delivery purposed respectively.
- The
rate of find on account of non-shipment / short shipment
/ delayed shipment has also been reduced to paisa 28 per
thousand or part thereof.
- The
validity of the Scheme has also been extended up to 30th
June 1998.
- Other
terms & conditions of the Scheme shall, however, remain
unchanged.
Please acknowledge receipt.
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