Circulars/Notifications / Infrastructure, Housing & SME Finance Department  

 IH&SMEFD Circular No. 02 of 2020
March 17, 2020

The Presidents/ Chief Executive Officers,
All Islamic Banks and Banks / DFIs having Islamic banking branches


Dear Sir/Madam,

Islamic Temporary Economic Refinance Facility (ITERF)

In order to support sustainable economic growth especially in the backdrop of challenges being faced by the industry in post-pandemic scenario, State Bank of Pakistan (SBP) has introduced Islamic Temporary Economic Refinance Facility (ITERF). The facility will provide concessionary refinance for setting up of new industrial units. Refinance under the facility will be available through Islamic banks and banks/DFIs having Islamic banking branches to all sectors across the board except power sector where SBP’s refinance facility for renewable energy projects already exists. Salient features of the scheme are as under:
  1. Scope & Eligibility Criteria: Long term finance facility for purchase of new imported and locally manufactured plant & machinery for setting of new projects
  2. Maximum limit: Rs. 5 billion per project
  3. Tenor: 10 years including grace period up to 2 years
  4. Repayment of finance: Quarterly/ half-yearly basis
  5. Validity of the facility: LCs/ILCs established from the date of announcement of the scheme till 31st March, 2021 will be eligible for ITERF

2. The facility shall be available with immediate effect. Potential customers are advised to approach their concerned Islamic banks and banks/DFIs having Islamic banking branches for availing financing under the facility. Details of the facility along with required documents are attached herewith.

Annex-I: Islamic Temporary Economic Refinance Facility (ITERF)

Annex-II: Documents for Islamic Temporary Economic Refinance Facility (ITERF)

Yours sincerely,

(Dr. Mian Farooq Haq)


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