Please refer to SMEFD Circular No. 05 dated February 25, 2009 and SRO dated 20th February, 2009 issued by the Finance Division, Government of Pakistan regarding the captioned subject.

2. It is advised that Finance Division, Government of Pakistan has made necessary provision / allocation in its budget for FY 2009-10 for disbursement of mark up rate subsidy of 3% to spinning mills for the period January – June 2009. Further, Finance Division has also modified time frame given for payment of subsidy, vide SRO issued on 7th August, 2009. Accordingly, the subsidy for six months period ending on June 30, 2009 (from 01-01-2009 to 30-06-2009) shall be paid from the date of issuance of this circular letter up-to September 15, 2009.

3. Banks/DFIs are, therefore, advised to pay the amount of subsidy to the eligible borrowers of spinning sector, to be calculated keeping in view the guidelines already issued vide MFD Circular No. 06 dated October 30, 2007 read with SMEFD Circular No. 05 dated February 25, 2009. After making payments of subsidy they may approach the concerned offices of SBP-BSC (Bank) for reimbursement during the time frame fixed for the purpose. No subsidy claim shall be entertained after 15th September 2009.

4. Other instructions on the subject shall remain unchanged.