Please refer to Para 7 (k) of LTFF Scheme read with SMEFD Circular Letter No. 05 dated April 22, 2010 on the captioned subject.

2. As per existing instructions under LTFF Scheme, Participating Financial Institutions (PFIs) may consider the financing requests of New Projects or Expansion / BMR of Existing Projects on the basis of Projected Exports. In terms of Para 7 (k) of LTFF Scheme such projects are liable to pay fine in case of failure to meet Projected Exports as per criteria defined in SMEFD Circular Letter No. 05 dated April 22, 2010. Henceforth, it has been decided that the banks/DFIs may entertain financing requests of said projects based on the following criteria:

Minimum Export Target [viz. annual exports of US$5 million or 50% of sales, whichever is lower] will be met within a maximum period of four (04) years, from the date of grant of refinance from SBP-BSC (Bank), in a phased manner. In the first phase, 40% of the export target would be required to be met in first two years while remaining 60% target will be met during next two years or total tenor of loan, whichever is less, as under:

Minimum Export Target
First Two Years - 40%	Annual exports of US$ 2 million or 20% of sales, whichever is lower.
Next Two Years - 60%	Annual exports of US$ 3 million or 30% of sales, whichever is lower.
Total Exports in Four Years.	Annual exports of US$ 5 million or 50% of sales, whichever is lower.

 

3. In the case of failure to meet above projected export targets, fine will be imposed as per criteria defined under SMEFD Circular Letter No. 05 dated April 22, 2010.

Other terms & condition of the Scheme shall remain unchanged.